Investors Purchase Large Volume of Norfolk Southern Call Options (NYSE:NSC)

Norfolk Southern Co. (NYSE:NSC - Get Free Report) was the recipient of some unusual options trading on Wednesday. Traders purchased 8,606 call options on the stock. This represents an increase of approximately 305% compared to the average volume of 2,127 call options.

Norfolk Southern Price Performance

Shares of NSC traded down $8.89 during mid-day trading on Wednesday, hitting $236.14. The company's stock had a trading volume of 2,577,851 shares, compared to its average volume of 1,281,044. The company has a current ratio of 1.24, a quick ratio of 1.14 and a debt-to-equity ratio of 1.34. The firm has a 50-day simple moving average of $252.34 and a 200 day simple moving average of $232.12. The firm has a market capitalization of $58.14 billion, a P/E ratio of 29.44, a P/E/G ratio of 3.34 and a beta of 1.30. Norfolk Southern has a 1-year low of $183.09 and a 1-year high of $263.66.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings results on Friday, January 26th. The railroad operator reported $2.83 EPS for the quarter, missing the consensus estimate of $2.87 by ($0.04). The business had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.09 billion. Norfolk Southern had a net margin of 15.03% and a return on equity of 21.06%. The firm's quarterly revenue was down 4.2% compared to the same quarter last year. During the same period in the prior year, the business earned $3.42 earnings per share. Analysts predict that Norfolk Southern will post 11.93 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 20th. Investors of record on Friday, May 3rd will be paid a $1.35 dividend. This represents a $5.40 annualized dividend and a yield of 2.29%. The ex-dividend date of this dividend is Thursday, May 2nd. Norfolk Southern's payout ratio is currently 67.33%.

Hedge Funds Weigh In On Norfolk Southern

Several hedge funds have recently bought and sold shares of the company. Exchange Traded Concepts LLC increased its position in Norfolk Southern by 662.5% during the fourth quarter. Exchange Traded Concepts LLC now owns 122 shares of the railroad operator's stock worth $29,000 after buying an additional 106 shares in the last quarter. Rise Advisors LLC purchased a new position in Norfolk Southern during the first quarter worth $34,000. Turtle Creek Wealth Advisors LLC purchased a new position in Norfolk Southern during the fourth quarter worth $32,000. Provence Wealth Management Group purchased a new position in Norfolk Southern during the third quarter worth $28,000. Finally, Creative Financial Designs Inc. ADV increased its position in Norfolk Southern by 317.1% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 146 shares of the railroad operator's stock worth $35,000 after buying an additional 111 shares in the last quarter. 75.10% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms recently commented on NSC. The Goldman Sachs Group boosted their target price on Norfolk Southern from $252.00 to $283.00 and gave the stock a "buy" rating in a research note on Thursday, March 21st. BMO Capital Markets lowered their target price on Norfolk Southern from $250.00 to $245.00 and set a "market perform" rating for the company in a research note on Monday, January 29th. Jefferies Financial Group started coverage on Norfolk Southern in a research note on Monday, April 8th. They set a "buy" rating and a $300.00 target price for the company. JPMorgan Chase & Co. upped their price objective on Norfolk Southern from $240.00 to $275.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 9th. Finally, Morgan Stanley cut Norfolk Southern from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $185.00 to $175.00 in a research report on Monday, January 29th. One research analyst has rated the stock with a sell rating, six have given a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $262.74.

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.