Norfolk Southern (NYSE:NSC) Reaches New 52-Week High - Should You Buy?

Key Points

• Norfolk Southern's shares reached a new 52-week high of $294.04 during trading, following a previous close of $283.71.
• Analysts have mixed ratings on Norfolk Southern, with a majority holding a "Hold" rating and an average price target of $286.25, though some firms have elevated their price targets significantly.
• The company reported an EPS of $3.29 for the recent quarter, surpassing expectations, and announced a quarterly dividend of $1.35, reflecting a 1.9% yield.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) reached a new 52-week high on Monday . The stock traded as high as $292.49 and last traded at $294.04, with a volume of 795238 shares trading hands. The stock had previously closed at $283.71.

Analyst Ratings Changes

Several equities analysts have recently weighed in on NSC shares. Baird R W raised Norfolk Southern to a "hold" rating in a research note on Tuesday, July 1st. Susquehanna reissued a "neutral" rating and set a $260.00 price target (up from $250.00) on shares of Norfolk Southern in a research report on Tuesday, June 24th. Evercore ISI reissued an "in-line" rating and set a $289.00 price target (up from $279.00) on shares of Norfolk Southern in a research report on Wednesday, July 30th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $288.00 price target (up from $282.00) on shares of Norfolk Southern in a research report on Wednesday, July 30th. Finally, Jefferies Financial Group reissued a "hold" rating and set a $300.00 price target on shares of Norfolk Southern in a research report on Friday, July 25th. Seven research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Norfolk Southern has a consensus rating of "Hold" and an average price target of $286.25.

Norfolk Southern Stock Up 0.5%

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 firm has a market capitalization of $65.61 billion, a P/E ratio of 19.74, a P/E/G ratio of 2.52 and a beta of 1.29. The stock has a fifty day moving average price of $278.46 and a two-hundred day moving average price of $252.08.

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, beating analysts' consensus estimates of $3.24 by $0.05. The business had revenue of $3.11 billion during the quarter, compared to the consensus estimate of $3.10 billion. Norfolk Southern had a return on equity of 19.35% and a net margin of 27.51%. Norfolk Southern has set its FY 2025 guidance at EPS. Research analysts forecast that Norfolk Southern Corporation will post 13 EPS for the current year.

Norfolk Southern Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. BNP Paribas bought a new position in Norfolk Southern during the 2nd quarter worth $26,000. WPG Advisers LLC bought a new position in shares of Norfolk Southern in the first quarter worth $27,000. True Wealth Design LLC grew its stake in shares of Norfolk Southern by 423.8% in the second quarter. True Wealth Design LLC now owns 110 shares of the railroad operator's stock worth $28,000 after purchasing an additional 89 shares in the last quarter. Putney Financial Group LLC bought a new position in shares of Norfolk Southern in the fourth quarter worth $30,000. Finally, NewSquare Capital LLC grew its stake in shares of Norfolk Southern by 58.5% in the second quarter. NewSquare Capital LLC now owns 130 shares of the railroad operator's stock worth $33,000 after purchasing an additional 48 shares in the last quarter. 75.10% of the stock is currently owned by 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.