Norfolk Southern (NYSE:NSC) Hits New 1-Year High - Should You Buy?

Key Points

• Norfolk Southern Corporation's stock reached a new 52-week high of $288.64 before closing at $286.86, with analysts providing mixed ratings on its future price targets.
• Recently announced quarterly earnings showed a profit of $3.29 per share, surpassing estimates by $0.05, along with a revenue of $3.11 billion.
• The company has declared a quarterly dividend of $1.35, contributing to an annualized yield of 1.9%, with a dividend payout ratio of 36.49%.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) shares reached a new 52-week high on Wednesday . The stock traded as high as $288.64 and last traded at $286.86, with a volume of 203507 shares traded. The stock had previously closed at $285.53.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. UBS Group upped their target price on shares of Norfolk Southern from $275.00 to $279.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Jefferies Financial Group reissued a "hold" rating and set a $300.00 price objective on shares of Norfolk Southern in a report on Friday, July 25th. BMO Capital Markets reissued a "market perform" rating and set a $255.00 price objective on shares of Norfolk Southern in a report on Thursday, April 24th. Citigroup increased their price objective on shares of Norfolk Southern from $288.00 to $305.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. Finally, Robert W. Baird increased their price objective on shares of Norfolk Southern from $255.00 to $300.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Seven equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company's stock. Based on data from MarketBeat, Norfolk Southern has an average rating of "Hold" and an average price target of $285.15.

Norfolk Southern Stock Up 0.2%

The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.71 and a current ratio of 0.79. The stock has a market capitalization of $64.27 billion, a price-to-earnings ratio of 19.33, a P/E/G ratio of 2.48 and a beta of 1.31. The firm's fifty day simple moving average is $268.07 and its 200 day simple moving average is $247.04.

Norfolk Southern (NYSE:NSC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The railroad operator reported $3.29 earnings per share for the quarter, topping the consensus estimate of $3.24 by $0.05. The company had revenue of $3.11 billion during the quarter, compared to analysts' expectations of $3.10 billion. Norfolk Southern had a net margin of 27.51% and a return on equity of 19.35%. Norfolk Southern has set its FY 2025 guidance at EPS. On average, sell-side analysts forecast that Norfolk Southern Corporation will post 13 earnings per share for the current year.

Norfolk Southern Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Friday, August 1st will be paid a $1.35 dividend. The ex-dividend date of this dividend is Friday, August 1st. This represents a $5.40 annualized dividend and a dividend yield of 1.9%. Norfolk Southern's dividend payout ratio (DPR) is currently 36.49%.

Hedge Funds Weigh In On Norfolk Southern

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NSC. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Norfolk Southern during the second quarter worth $1,245,000. Advisory Services Network LLC lifted its holdings in shares of Norfolk Southern by 0.5% during the second quarter. Advisory Services Network LLC now owns 12,633 shares of the railroad operator's stock worth $3,512,000 after buying an additional 66 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Norfolk Southern by 142.1% during the second quarter. Geneos Wealth Management Inc. now owns 148,919 shares of the railroad operator's stock worth $38,119,000 after buying an additional 87,402 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new position in Norfolk Southern in the second quarter valued at about $152,000. Finally, Rexford Capital Inc. acquired a new position in Norfolk Southern in the second quarter valued at about $416,000. 75.10% of the stock is owned by institutional investors.

Norfolk Southern Company Profile

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.

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