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

Shares of Norfolk Southern Co. (NYSE:NSC - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $252.32, but opened at $264.74. Norfolk Southern shares last traded at $261.94, with a volume of 397,870 shares.

The railroad operator reported $3.04 EPS for the quarter, topping the consensus estimate of $2.97 by $0.07. Norfolk Southern had a return on equity of 20.25% and a net margin of 19.85%.

Norfolk Southern Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Stockholders of record on Friday, February 7th will be issued a $1.35 dividend. The ex-dividend date of this dividend is Friday, February 7th. This represents a $5.40 annualized dividend and a dividend yield of 2.10%. Norfolk Southern's dividend payout ratio is currently 50.70%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on NSC shares. Loop Capital boosted their price target on Norfolk Southern from $285.00 to $287.00 and gave the company a "buy" rating in a report on Wednesday, October 23rd. Citigroup boosted their price target on Norfolk Southern from $302.00 to $316.00 and gave the company a "buy" rating in a report on Tuesday, November 12th. TD Cowen boosted their price target on Norfolk Southern from $253.00 to $259.00 and gave the company a "hold" rating in a report on Wednesday, October 23rd. Royal Bank of Canada boosted their price target on Norfolk Southern from $275.00 to $286.00 and gave the company an "outperform" rating in a report on Thursday. Finally, Stephens upped their target price on Norfolk Southern from $260.00 to $275.00 and gave the stock an "equal weight" rating in a report on Thursday. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $277.74.

Insider Activity at Norfolk Southern

In other Norfolk Southern news, Director Sameh Fahmy acquired 350 shares of the stock in a transaction that occurred on Thursday, December 12th. The shares were acquired at an average cost of $249.37 per share, with a total value of $87,279.50. Following the transaction, the director now owns 10,350 shares of the company's stock, valued at $2,580,979.50. The trade was a 3.50 % increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Norfolk Southern

Hedge funds and other institutional investors have recently modified their holdings of the company. Principal Financial Group Inc. lifted its holdings in shares of Norfolk Southern by 3.6% during the 3rd quarter. Principal Financial Group Inc. now owns 255,200 shares of the railroad operator's stock valued at $63,417,000 after buying an additional 8,844 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Norfolk Southern by 20.5% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,428 shares of the railroad operator's stock valued at $3,556,000 after buying an additional 2,453 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Norfolk Southern by 0.7% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 533,459 shares of the railroad operator's stock worth $132,565,000 after purchasing an additional 3,621 shares in the last quarter. Pathway Financial Advisers LLC increased its stake in shares of Norfolk Southern by 25,181.8% in the 3rd quarter. Pathway Financial Advisers LLC now owns 893,459 shares of the railroad operator's stock worth $222,025,000 after purchasing an additional 889,925 shares in the last quarter. Finally, Grandview Asset Management LLC purchased a new stake in shares of Norfolk Southern in the 4th quarter worth $918,000. 75.10% of the stock is owned by institutional investors.

Norfolk Southern Price Performance

The company has a current ratio of 0.73, a quick ratio of 0.65 and a debt-to-equity ratio of 1.21. The stock has a market capitalization of $58.26 billion, a PE ratio of 24.18, a price-to-earnings-growth ratio of 2.29 and a beta of 1.34. The firm has a 50 day moving average price of $249.36 and a 200 day moving average price of $248.69.

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.