Norfolk Southern (NYSE:NSC) Shares Gap Up on Strong Earnings

Norfolk Southern Co. (NYSE:NSC)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $222.90, but opened at $242.00. Norfolk Southern shares last traded at $244.72, with a volume of 377,231 shares.

The railroad operator reported $3.06 EPS for the quarter, beating analysts’ consensus estimates of $2.85 by $0.21. Norfolk Southern had a return on equity of 19.61% and a net margin of 11.76%. The firm had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $3.04 billion. During the same quarter in the prior year, the business posted $2.95 earnings per share. Norfolk Southern’s revenue for the quarter was up 2.1% on a year-over-year basis.

Norfolk Southern Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Friday, August 2nd will be issued a $1.35 dividend. The ex-dividend date is Friday, August 2nd. This represents a $5.40 annualized dividend and a yield of 2.20%. Norfolk Southern’s dividend payout ratio is presently 86.96%.

Analysts Set New Price Targets

Several research analysts have weighed in on NSC shares. Morgan Stanley reissued an “underweight” rating and set a $175.00 price objective on shares of Norfolk Southern in a report on Monday, July 8th. Wells Fargo & Company boosted their price objective on Norfolk Southern from $260.00 to $270.00 and gave the company an “overweight” rating in a report on Friday. Sanford C. Bernstein reduced their target price on Norfolk Southern from $288.00 to $285.00 and set an “outperform” rating on the stock in a report on Monday, July 8th. Loop Capital upped their price target on Norfolk Southern from $261.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, April 18th. Finally, Susquehanna lifted their price objective on shares of Norfolk Southern from $245.00 to $255.00 and gave the stock a “neutral” rating in a report on Friday. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat, Norfolk Southern currently has an average rating of “Moderate Buy” and an average target price of $264.53.

Insiders Place Their Bets

In other Norfolk Southern news, CMO Claude E. Elkins sold 8,329 shares of the firm’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $228.43, for a total transaction of $1,902,593.47. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, Director Sameh Fahmy acquired 2,000 shares of the business’s stock in a transaction dated Friday, June 14th. The stock was acquired at an average price of $219.25 per share, for a total transaction of $438,500.00. Following the completion of the acquisition, the director now directly owns 7,000 shares in the company, valued at approximately $1,534,750. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Claude E. Elkins sold 8,329 shares of Norfolk Southern stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $228.43, for a total value of $1,902,593.47. The disclosure for this sale can be found here. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Norfolk Southern

Several large investors have recently made changes to their positions in NSC. Cedar Wealth Management LLC acquired a new stake in shares of Norfolk Southern during the 1st quarter valued at $27,000. 1620 Investment Advisors Inc. acquired a new stake in shares of Norfolk Southern during the second quarter worth $27,000. Rise Advisors LLC purchased a new stake in shares of Norfolk Southern during the first quarter valued at $34,000. Turtle Creek Wealth Advisors LLC acquired a new position in shares of Norfolk Southern in the 4th quarter valued at $32,000. Finally, Financial Connections Group Inc. acquired a new position in shares of Norfolk Southern in the 4th quarter valued at $34,000. Institutional investors own 75.10% of the company’s stock.

Norfolk Southern Trading Up 10.3 %

The company has a current ratio of 0.68, a quick ratio of 0.61 and a debt-to-equity ratio of 1.37. The stock has a market cap of $55.54 billion, a price-to-earnings ratio of 39.41, a P/E/G ratio of 2.18 and a beta of 1.32. The company has a fifty day simple moving average of $222.31 and a 200-day simple moving average of $237.36.

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.