Norfolk Southern (NYSE:NSC) Reaches New 12-Month High – Should You Buy?

Norfolk Southern Corporation (NYSE:NSC)’s share price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $309.99 and last traded at $308.58, with a volume of 67664 shares trading hands. The stock had previously closed at $305.72.

Analysts Set New Price Targets

NSC has been the topic of several recent analyst reports. Barclays decreased their price objective on shares of Norfolk Southern from $340.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Sanford C. Bernstein reduced their price target on shares of Norfolk Southern from $347.00 to $333.00 and set an “outperform” rating for the company in a research report on Tuesday, November 11th. Evercore lifted their price objective on Norfolk Southern from $298.00 to $299.00 in a report on Thursday, December 18th. JPMorgan Chase & Co. cut their price objective on Norfolk Southern from $301.00 to $296.00 and set a “neutral” rating for the company in a research note on Friday, January 30th. Finally, Morgan Stanley upgraded Norfolk Southern from an “equal weight” rating to a “buy” rating in a research report on Thursday, December 18th. Seven equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $304.47.

Norfolk Southern Trading Up 1.6%

The company has a current ratio of 0.85, a quick ratio of 0.78 and a debt-to-equity ratio of 1.06. The company has a fifty day moving average price of $292.01 and a two-hundred day moving average price of $287.10. The firm has a market capitalization of $69.71 billion, a price-to-earnings ratio of 24.37, a PEG ratio of 5.45 and a beta of 1.34.

Norfolk Southern (NYSE:NSC) last announced its quarterly earnings data on Thursday, January 29th. The railroad operator reported $3.22 EPS for the quarter, topping analysts’ consensus estimates of $2.76 by $0.46. The firm had revenue of $3 billion for the quarter, compared to the consensus estimate of $3.03 billion. Norfolk Southern had a return on equity of 18.78% and a net margin of 23.59%.The firm’s revenue was down 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.04 earnings per share. As a group, research analysts forecast that Norfolk Southern Corporation will post 13 earnings per share for the current fiscal year.

Norfolk Southern Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, February 20th. Stockholders of record on Friday, February 6th will be given a dividend of $1.35 per share. The ex-dividend date of this dividend is Friday, February 6th. This represents a $5.40 annualized dividend and a dividend yield of 1.7%. Norfolk Southern’s payout ratio is presently 42.35%.

Insider Activity

In other news, EVP Anil Bhatt sold 900 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $281.60, for a total transaction of $253,440.00. Following the completion of the sale, the executive vice president owned 1,413 shares in the company, valued at $397,900.80. This trade represents a 38.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William Jr. Clyburn acquired 204 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was acquired at an average price of $294.79 per share, for a total transaction of $60,137.16. Following the completion of the acquisition, the director directly owned 405 shares of the company’s stock, valued at $119,389.95. The trade was a 101.49% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Norfolk Southern

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NSC. Tritonpoint Wealth LLC raised its stake in Norfolk Southern by 3.5% in the third quarter. Tritonpoint Wealth LLC now owns 1,041 shares of the railroad operator’s stock valued at $313,000 after purchasing an additional 35 shares in the last quarter. Massachusetts Wealth Management grew its position in Norfolk Southern by 0.6% in the third quarter. Massachusetts Wealth Management now owns 5,986 shares of the railroad operator’s stock worth $1,798,000 after acquiring an additional 35 shares in the last quarter. Gilbert & Cook Inc. increased its stake in Norfolk Southern by 1.4% in the fourth quarter. Gilbert & Cook Inc. now owns 2,515 shares of the railroad operator’s stock valued at $726,000 after acquiring an additional 35 shares during the last quarter. Moss Adams Wealth Advisors LLC raised its position in Norfolk Southern by 4.6% during the fourth quarter. Moss Adams Wealth Advisors LLC now owns 791 shares of the railroad operator’s stock valued at $228,000 after purchasing an additional 35 shares in the last quarter. Finally, Confluence Wealth Services Inc. lifted its stake in Norfolk Southern by 1.1% during the fourth quarter. Confluence Wealth Services Inc. now owns 3,090 shares of the railroad operator’s stock worth $892,000 after purchasing an additional 35 shares during the last quarter. Hedge funds and other institutional investors own 75.10% of the company’s stock.

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.