Norfolk Southern Sees Unusually High Options Volume (NYSE:NSC)

Key Points

• Options activity surged: Investors bought 4,188 Norfolk Southern call options on Wednesday, 856% above the typical daily volume of 438.
• Analyst sentiment remains mixed: Seven analysts rate the stock a Buy and 14 a Hold, producing a consensus Hold rating and an average price target of $348.81.
• Quarterly results topped expectations: Norfolk Southern reported $3.62 in earnings per share versus $3.46 expected, while revenue rose 13.6% year over year to $3.53 billion.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) was the target of unusually large options trading activity on Wednesday. Investors acquired 4,188 call options on the stock. This represents an increase of 856% compared to the typical daily volume of 438 call options.

Wall Street Analyst Weigh In

A number of research firms have issued reports on NSC. TD Cowen boosted their price target on Norfolk Southern from $376.00 to $379.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. Robert W. Baird raised their target price on Norfolk Southern from $360.00 to $377.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. BMO Capital Markets lifted their price target on shares of Norfolk Southern from $310.00 to $355.00 and gave the stock a "market perform" rating in a research note on Monday, July 27th. Royal Bank Of Canada upped their price objective on Norfolk Southern from $330.00 to $350.00 and gave the company a "sector perform" rating in a research note on Friday, October 23rd. Finally, Barclays boosted their price objective on shares of Norfolk Southern from $360.00 to $400.00 and gave the company an "overweight" rating in a research report on Friday, July 24th. Seven analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $348.81.

Institutional Trading of Norfolk Southern

Hedge funds have recently bought and sold shares of the company. B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Norfolk Southern in the 2nd quarter valued at about $3,669,000. SCS Capital Management LLC bought a new stake in shares of Norfolk Southern during the 2nd quarter worth about $13,837,000. NewEdge Advisors LLC grew its holdings in Norfolk Southern by 17.2% during the second quarter. NewEdge Advisors LLC now owns 35,598 shares of the railroad operator's stock valued at $11,199,000 after purchasing an additional 5,233 shares during the last quarter. Focus Partners Advisor Solutions LLC acquired a new position in Norfolk Southern in the 2nd quarter valued at $1,376,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab lifted its position in shares of Norfolk Southern by 29.2% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 54,620 shares of the railroad operator's stock worth $17,183,000 after purchasing an additional 12,350 shares during the last quarter. 75.10% of the stock is owned by hedge funds and other institutional investors.

Norfolk Southern Price Performance

NSC traded up $1.88 on Wednesday, reaching $329.81. The company had a trading volume of 212,221 shares, compared to its average volume of 1,169,803. Norfolk Southern has a one year low of $277.80 and a one year high of $358.60. The company has a market capitalization of $74.08 billion, a P/E ratio of 27.66, a PEG ratio of 4.86 and a beta of 1.20. The company has a fifty day moving average of $324.08 and a 200-day moving average of $316.48. The company has a current ratio of 0.90, a quick ratio of 0.81 and a debt-to-equity ratio of 0.95.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its earnings results on Thursday, October 22nd. The railroad operator reported $3.62 earnings per share for the quarter, topping analysts' consensus estimates of $3.46 by $0.16. The firm had revenue of $3.53 billion during the quarter, compared to the consensus estimate of $3.48 billion. Norfolk Southern had a return on equity of 18.22% and a net margin of 20.70%. The firm's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.30 earnings per share. As a group, equities research analysts anticipate that Norfolk Southern will post 12.83 earnings per share for the current year.

Norfolk Southern Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be given a $1.35 dividend. The ex-dividend date is Friday, November 6th. This represents a $5.40 annualized dividend and a yield of 1.6%. Norfolk Southern's payout ratio is 45.26%.

Norfolk Southern Company Profile

Norfolk Southern Corporation is a freight transportation company that operates a major railroad network across the eastern United States. Its rail services connect businesses, ports and communities, and link with other railroads to move goods across North America. The company transports a broad range of products, including coal, chemicals, agricultural goods, automotive vehicles and parts, metals, construction materials and consumer products. Its services include intermodal transportation, which combines rail with truck or container shipping, as well as rail freight and logistics solutions.

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