Norfolk Southern (NYSE:NSC) Sets New 52-Week High After Analyst Upgrade

Key Points

• Norfolk Southern shares hit a new 52-week high after Robert W. Baird raised its price target from $330 to $360, though the firm kept a neutral rating. The stock briefly reached $326.77 and last traded around $327.13.
• Analyst sentiment remains mixed, with several firms recently adjusting targets and ratings, including Wolfe Research and TD Cowen raising targets while Stephens upgraded the stock to hold. Overall, the consensus rating remains Hold with an average target price of $325.39.
• The railroad posted solid quarterly results and a dividend payout, reporting $2.65 EPS, which beat estimates, while revenue came in below expectations at $3 billion. The company also paid a quarterly dividend of $1.35 per share, equal to a 1.7% annualized yield.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) hit a new 52-week high during trading on Friday after Robert W. Baird raised their price target on the stock from $330.00 to $360.00. Robert W. Baird currently has a neutral rating on the stock. Norfolk Southern traded as high as $326.77 and last traded at $327.1340, with a volume of 51668 shares. The stock had previously closed at $323.77.

Other equities research analysts have also recently issued reports about the stock. Wolfe Research upped their price objective on shares of Norfolk Southern from $350.00 to $355.00 and gave the stock an "outperform" rating in a report on Tuesday, April 7th. Stephens upgraded Norfolk Southern to a "hold" rating in a research note on Wednesday. Sanford C. Bernstein lowered their price objective on Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. TD Cowen boosted their target price on shares of Norfolk Southern from $313.00 to $337.00 and gave the stock a "buy" rating in a research report on Monday, April 27th. Finally, Rothschild & Co Redburn upped their price target on Norfolk Southern from $308.00 to $315.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $325.39.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NSC. Gilbert & Cook Inc. lifted its holdings in Norfolk Southern by 1.4% during the 4th quarter. Gilbert & Cook Inc. now owns 2,515 shares of the railroad operator's stock valued at $726,000 after purchasing an additional 35 shares during the last quarter. Moss Adams Wealth Advisors LLC raised its stake in shares of Norfolk Southern by 4.6% in the fourth quarter. Moss Adams Wealth Advisors LLC now owns 791 shares of the railroad operator's stock valued at $228,000 after acquiring an additional 35 shares during the last quarter. Confluence Wealth Services Inc. raised its stake in shares of Norfolk Southern by 1.1% in the fourth quarter. Confluence Wealth Services Inc. now owns 3,090 shares of the railroad operator's stock valued at $892,000 after acquiring an additional 35 shares during the last quarter. Exencial Wealth Advisors LLC boosted its holdings in shares of Norfolk Southern by 1.1% in the 4th quarter. Exencial Wealth Advisors LLC now owns 3,216 shares of the railroad operator's stock worth $929,000 after acquiring an additional 35 shares in the last quarter. Finally, Sovereign Financial Group Inc. boosted its holdings in shares of Norfolk Southern by 3.3% in the 1st quarter. Sovereign Financial Group Inc. now owns 1,108 shares of the railroad operator's stock worth $318,000 after acquiring an additional 35 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Norfolk Southern Stock Performance

The stock has a 50-day moving average of $312.72 and a 200 day moving average of $302.83. The firm has a market capitalization of $73.44 billion, a P/E ratio of 27.55, a price-to-earnings-growth ratio of 5.87 and a beta of 1.27. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.81 and a current ratio of 0.91.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings data on Friday, April 24th. The railroad operator reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.49 by $0.16. The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.13 billion. Norfolk Southern had a return on equity of 18.30% and a net margin of 21.91%.The business's revenue was up .2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.69 earnings per share. On average, research analysts anticipate that Norfolk Southern Corporation will post 12.16 earnings per share for the current year.

Norfolk Southern Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 20th. Investors of record on Friday, May 8th were given a dividend of $1.35 per share. The ex-dividend date was Friday, May 8th. This represents a $5.40 annualized dividend and a yield of 1.7%. Norfolk Southern's dividend payout ratio is 45.49%.

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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