Norfolk Southern (NYSE:NSC) Stock Crosses Below 50-Day Moving Average - Time to Sell?

Key Points

• Norfolk Southern shares fell below their 50-day moving average, trading as low as $319.69 versus the average of $324.86; the stock last traded at about $320.06.
• Analysts’ average rating is Hold, with an average price target of $348.81. Seven analysts rate the shares Buy and fourteen rate them Hold.
• The railroad operator beat quarterly earnings and revenue estimates, reporting $3.62 EPS and $3.53 billion in revenue; revenue rose 13.6% year over year. It also declared a $1.35 quarterly dividend.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $324.86 and traded as low as $319.69. Norfolk Southern shares last traded at $320.0640, with a volume of 1,280,254 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on NSC shares. Royal Bank Of Canada raised their price target on Norfolk Southern from $330.00 to $350.00 and gave the stock a "sector perform" rating in a research report on Friday, October 23rd. JPMorgan Chase & Co. upped their price target on shares of Norfolk Southern from $318.00 to $323.00 and gave the company a "neutral" rating in a research note on Friday, October 23rd. Robert W. Baird raised their price target on shares of Norfolk Southern from $360.00 to $377.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Evercore boosted their price objective on shares of Norfolk Southern from $358.00 to $360.00 in a report on Wednesday, September 30th. Finally, Barclays upped their price target on shares of Norfolk Southern from $360.00 to $400.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. Seven research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $348.81.

Norfolk Southern Price Performance

The stock's 50-day moving average is $324.86 and its two-hundred day moving average is $316.10. The company has a current ratio of 0.90, a quick ratio of 0.81 and a debt-to-equity ratio of 0.95. The company has a market capitalization of $71.89 billion, a PE ratio of 26.83, a price-to-earnings-growth ratio of 5.17 and a beta of 1.20.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The railroad operator reported $3.62 EPS for the quarter, topping analysts' consensus estimates of $3.46 by $0.16. Norfolk Southern had a return on equity of 18.22% and a net margin of 20.70%. The business had revenue of $3.53 billion during the quarter, compared to the consensus estimate of $3.48 billion. During the same period in the previous year, the company posted $3.30 earnings per share. The business's revenue for the quarter was up 13.6% on a year-over-year basis. On average, equities analysts predict that Norfolk Southern Corporation will post 12.80 EPS for the current year.

Norfolk Southern Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Friday, November 6th will be paid a $1.35 dividend. The ex-dividend date is Friday, November 6th. This represents a $5.40 annualized dividend and a dividend yield of 1.7%. Norfolk Southern's payout ratio is currently 45.26%.

Institutional Trading of Norfolk Southern

Several institutional investors and hedge funds have recently added to or reduced their stakes in NSC. BlackRock Inc. acquired a new stake in Norfolk Southern in the 2nd quarter worth about $5,033,549,000. Bank of America Corp DE acquired a new stake in Norfolk Southern during the 2nd quarter valued at $978,977,000. Legal & General Group Plc bought a new stake in Norfolk Southern in the second quarter valued at $503,093,000. Bank of New York Mellon Corp acquired a new position in shares of Norfolk Southern in the 2nd quarter valued at $364,414,000. Finally, Deutsche Bank AG bought a new position in Norfolk Southern during the second quarter valued at about $356,558,000. Institutional investors own 75.10% of the company's stock.

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.

Norfolk Southern was formed in 1982 through the merger of the Norfolk and Western Railway and the Southern Railway.

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