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

Norfolk Southern Co. (NYSE:NSC) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $248.16, but opened at $257.55. Norfolk Southern shares last traded at $255.67, with a volume of 318,288 shares changing hands.

The railroad operator reported $3.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.11 by $0.14. Norfolk Southern had a net margin of 14.85% and a return on equity of 19.64%. The firm had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.08 billion. During the same period in the prior year, the firm posted $2.65 earnings per share. The company’s quarterly revenue was up 3.3% compared to the same quarter last year.

Norfolk Southern Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 20th. Investors of record on Friday, November 1st will be issued a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 2.10%. The ex-dividend date is Friday, November 1st. Norfolk Southern’s payout ratio is currently 86.96%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Citigroup raised their price objective on Norfolk Southern from $294.00 to $302.00 and gave the company a “buy” rating in a research report on Tuesday. Susquehanna raised their price target on Norfolk Southern from $280.00 to $285.00 and gave the company a “neutral” rating in a report on Wednesday. Bank of America upped their price objective on shares of Norfolk Southern from $276.00 to $291.00 and gave the company a “buy” rating in a report on Wednesday. Morgan Stanley restated an “underweight” rating and set a $175.00 target price on shares of Norfolk Southern in a research note on Monday, July 8th. Finally, Stifel Nicolaus upped their price target on shares of Norfolk Southern from $241.00 to $245.00 and gave the company a “hold” rating in a research note on Friday, October 11th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat.com, Norfolk Southern currently has a consensus rating of “Moderate Buy” and an average price target of $274.16.

Insider Transactions at Norfolk Southern

In related news, CEO Alan H. Shaw sold 51,325 shares of the company’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $255.98, for a total transaction of $13,138,173.50. Following the completion of the sale, the chief executive officer now owns 35,045 shares of the company’s stock, valued at $8,970,819.10. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. In other news, EVP Nabanita C. Nag sold 355 shares of the firm’s stock in a transaction that occurred on Monday, July 29th. The shares were sold at an average price of $249.38, for a total value of $88,529.90. Following the sale, the executive vice president now directly owns 1,488 shares in the company, valued at approximately $371,077.44. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Alan H. Shaw sold 51,325 shares of the company’s stock in a transaction that occurred on Friday, September 13th. The stock was sold at an average price of $255.98, for a total transaction of $13,138,173.50. Following the transaction, the chief executive officer now owns 35,045 shares of the company’s stock, valued at approximately $8,970,819.10. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.19% of the stock is currently owned by insiders.

Institutional Trading of Norfolk Southern

A number of hedge funds and other institutional investors have recently modified their holdings of NSC. Cedar Wealth Management LLC bought a new position in shares of Norfolk Southern in the 1st quarter valued at $27,000. 1620 Investment Advisors Inc. bought a new position in Norfolk Southern in the second quarter valued at about $27,000. Financial Connections Group Inc. acquired a new stake in shares of Norfolk Southern during the second quarter valued at about $31,000. HWG Holdings LP bought a new stake in shares of Norfolk Southern during the second quarter worth about $31,000. Finally, Hobbs Group Advisors LLC acquired a new position in shares of Norfolk Southern in the second quarter valued at approximately $34,000. Institutional investors own 75.10% of the company’s stock.

Norfolk Southern Trading Down 1.3 %

The business’s fifty day moving average is $248.76 and its 200-day moving average is $236.88. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.54 and a current ratio of 0.63. The firm has a market cap of $58.06 billion, a P/E ratio of 41.38, a price-to-earnings-growth ratio of 2.33 and a beta of 1.31.

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.