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

Norfolk Southern Co. (NYSE:NSC) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. 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.

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

Norfolk Southern Announces Dividend

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

Analyst Ratings Changes

Several research firms recently weighed in on NSC. Royal Bank of Canada boosted their price objective on shares of Norfolk Southern from $272.00 to $282.00 and gave the stock an “outperform” rating in a research report on Wednesday. Wells Fargo & Company boosted their target price on Norfolk Southern from $270.00 to $280.00 and gave the stock an “overweight” rating in a research report on Wednesday. Stifel Nicolaus raised their price target on Norfolk Southern from $241.00 to $245.00 and gave the company a “hold” rating in a report on Friday, October 11th. Stephens reissued an “equal weight” rating and set a $263.00 price objective on shares of Norfolk Southern in a report on Wednesday. Finally, Benchmark raised their target price on shares of Norfolk Southern from $270.00 to $285.00 and gave the company a “buy” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $274.16.

Insider Transactions at Norfolk Southern

In other Norfolk Southern news, Director Sameh Fahmy acquired 700 shares of the firm’s stock in a transaction that occurred on Thursday, August 1st. The stock was acquired at an average cost of $245.15 per share, for a total transaction of $171,605.00. Following the transaction, the director now owns 7,700 shares of the company’s stock, valued at $1,887,655. This trade represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other Norfolk Southern news, CEO Alan H. Shaw sold 51,325 shares of Norfolk Southern stock in a transaction dated Friday, September 13th. The stock was sold at an average price of $255.98, for a total value of $13,138,173.50. Following the sale, the chief executive officer now owns 35,045 shares of the company’s stock, valued at $8,970,819.10. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Sameh Fahmy acquired 700 shares of Norfolk Southern stock in a transaction dated Thursday, August 1st. The shares were purchased at an average cost of $245.15 per share, with a total value of $171,605.00. Following the completion of the transaction, the director now directly owns 7,700 shares of the company’s stock, valued at $1,887,655. This trade represents a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Norfolk Southern

Institutional investors have recently bought and sold shares of the company. Cedar Wealth Management LLC acquired a new stake in shares of Norfolk Southern in the first quarter valued at approximately $27,000. 1620 Investment Advisors Inc. acquired a new stake in Norfolk Southern in the 2nd quarter valued at $27,000. Financial Connections Group Inc. acquired a new stake in Norfolk Southern in the 2nd quarter valued at $31,000. HWG Holdings LP bought a new stake in Norfolk Southern during the 2nd quarter worth about $31,000. Finally, Hobbs Group Advisors LLC acquired a new position in shares of Norfolk Southern during the 2nd quarter worth about $34,000. Institutional investors own 75.10% of the company’s stock.

Norfolk Southern Price Performance

The company has a market cap of $58.06 billion, a P/E ratio of 41.38, a PEG ratio of 2.33 and a beta of 1.31. 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 company has a fifty day moving average price of $248.76 and a two-hundred day moving average price of $236.88.

About Norfolk Southern

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.