Norfolk Southern (NYSE:NSC) Price Target Lowered to $320.00 at UBS Group

Key Points

• Norfolk Southern's price target has been lowered from $321.00 to $320.00 by UBS Group, yet they still maintain a "buy" rating on the stock, indicating a potential upside of 13.58% from its current price.
• The company reported a quarterly EPS of $3.30, which slightly missed analyst expectations, while its revenue was $3.10 billion compared to an expected $3.11 billion.
• Institutional investors hold a significant portion of Norfolk Southern's stock, with 75.10% owned by hedge funds and institutional investors, indicating strong institutional confidence.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price target lowered by stock analysts at UBS Group from $321.00 to $320.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the railroad operator's stock. UBS Group's price objective would suggest a potential upside of 13.58% from the company's current price.

Several other equities research analysts also recently issued reports on the company. Evercore ISI boosted their price objective on Norfolk Southern from $289.00 to $298.00 in a report on Thursday, September 25th. Baird R W raised Norfolk Southern to a "hold" rating in a research note on Tuesday, July 1st. BMO Capital Markets raised their price target on Norfolk Southern from $285.00 to $305.00 and gave the stock a "market perform" rating in a research report on Friday. Benchmark cut Norfolk Southern from a "buy" rating to a "hold" rating in a report on Wednesday, July 30th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Norfolk Southern from $290.00 to $354.00 and gave the stock a "buy" rating in a research report on Wednesday, October 1st. Eight analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to data from MarketBeat, Norfolk Southern has a consensus rating of "Hold" and a consensus price target of $300.15.

Norfolk Southern Stock Down 0.7%

Shares of NYSE NSC traded down $2.10 during mid-day trading on Friday, reaching $281.73. 334,444 shares of the company were exchanged, compared to its average volume of 1,583,369. The company has a quick ratio of 0.71, a current ratio of 0.79 and a debt-to-equity ratio of 1.11. The stock has a market cap of $63.28 billion, a price-to-earnings ratio of 19.05, a P/E/G ratio of 2.59 and a beta of 1.33. Norfolk Southern has a 1 year low of $201.63 and a 1 year high of $302.24. The firm has a 50-day moving average of $285.79 and a 200 day moving average of $261.68.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings results on Thursday, October 23rd. The railroad operator reported $3.30 EPS for the quarter, missing analysts' consensus estimates of $3.31 by ($0.01). The business had revenue of $3.10 billion during the quarter, compared to analysts' expectations of $3.11 billion. Norfolk Southern had a net margin of 27.51% and a return on equity of 19.35%. The company's quarterly revenue was up .0% compared to the same quarter last year. During the same quarter last year, the business posted $3.25 earnings per share. On average, research analysts expect that Norfolk Southern will post 13 earnings per share for the current year.

Institutional Investors Weigh In On Norfolk Southern

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in shares of Norfolk Southern by 1.2% in the 2nd quarter. Vanguard Group Inc. now owns 20,561,273 shares of the railroad operator's stock valued at $5,263,069,000 after purchasing an additional 239,914 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of Norfolk Southern by 31.5% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,319,010 shares of the railroad operator's stock worth $2,680,910,000 after purchasing an additional 2,710,930 shares in the last quarter. Dodge & Cox boosted its position in shares of Norfolk Southern by 1.8% during the 2nd quarter. Dodge & Cox now owns 10,859,121 shares of the railroad operator's stock worth $2,779,609,000 after acquiring an additional 192,567 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Norfolk Southern by 0.8% during the 2nd quarter. Geode Capital Management LLC now owns 4,822,075 shares of the railroad operator's stock worth $1,228,064,000 after acquiring an additional 36,362 shares in the last quarter. Finally, EdgePoint Investment Group Inc. boosted its position in shares of Norfolk Southern by 4.6% during the 2nd quarter. EdgePoint Investment Group Inc. now owns 4,182,921 shares of the railroad operator's stock worth $1,070,702,000 after acquiring an additional 184,586 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors and hedge funds.

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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