Norfolk Southern (NYSE:NSC) Reaches New 12-Month High - Still a Buy?

Key Points

• Norfolk Southern's stock reached a new 52-week high at $300.08, currently trading at $299.57 with increased trading volume.
• Several analysts have upgraded their price targets for Norfolk Southern, with TD Cowen raising it significantly from $263.00 to $323.00.
• The company reported quarterly earnings of $3.29 per share, exceeding expectations, and declared a quarterly dividend of $1.35, representing an annual yield of 1.8% for shareholders.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) shares hit a new 52-week high on Monday . The stock traded as high as $300.08 and last traded at $299.57, with a volume of 54659 shares changing hands. The stock had previously closed at $297.49.

Analysts Set New Price Targets

Several brokerages recently weighed in on NSC. TD Cowen raised shares of Norfolk Southern from a "hold" rating to a "buy" rating and raised their price target for the company from $263.00 to $323.00 in a research report on Monday, July 21st. Bank of America raised their price target on shares of Norfolk Southern from $290.00 to $305.00 and gave the company a "buy" rating in a research report on Thursday, July 17th. Sanford C. Bernstein lifted their target price on shares of Norfolk Southern from $295.00 to $305.00 and gave the stock an "outperform" rating in a research report on Monday, July 21st. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $278.00 target price on shares of Norfolk Southern in a research report on Monday, June 2nd. Finally, Royal Bank Of Canada downgraded shares of Norfolk Southern from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, July 29th. Seven research 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.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $288.45.

Norfolk Southern Stock Performance

The firm has a market cap of $67.19 billion, a PE ratio of 20.20, a PEG ratio of 2.64 and a beta of 1.29. The company has a current ratio of 0.79, a quick ratio of 0.71 and a debt-to-equity ratio of 1.11. The firm's 50 day simple moving average is $280.68 and its 200 day simple moving average is $253.81.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The railroad operator reported $3.29 EPS for the quarter, topping the consensus estimate of $3.24 by $0.05. The business had revenue of $3.11 billion for 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, research analysts forecast that Norfolk Southern Corporation will post 13 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Friday, August 1st were paid a $1.35 dividend. The ex-dividend date was Friday, August 1st. This represents a $5.40 annualized dividend and a yield of 1.8%. Norfolk Southern's payout ratio is presently 36.49%.

Institutional Trading of Norfolk Southern

Hedge funds have recently made changes to their positions in the business. BNP Paribas purchased a new stake in shares of Norfolk Southern during the 2nd quarter valued at about $26,000. WPG Advisers LLC purchased a new stake in shares of Norfolk Southern during the 1st quarter valued at about $27,000. True Wealth Design LLC grew its holdings in Norfolk Southern by 423.8% during the 2nd quarter. True Wealth Design LLC now owns 110 shares of the railroad operator's stock valued at $28,000 after purchasing an additional 89 shares during the last quarter. NewSquare Capital LLC grew its holdings in Norfolk Southern by 58.5% during the 2nd quarter. NewSquare Capital LLC now owns 130 shares of the railroad operator's stock valued at $33,000 after purchasing an additional 48 shares during the last quarter. Finally, HWG Holdings LP bought a new position in Norfolk Southern during the 1st quarter valued at about $35,000. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

About Norfolk Southern

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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