Norfolk Southern (NYSE:NSC) Given New $376.00 Price Target at Citigroup

Norfolk Southern (NYSE:NSC) had its price target lifted by Citigroup from $351.00 to $376.00 in a research note released on Friday,Benzinga reports. They currently have a neutral rating on the railroad operator’s stock.

A number of other research analysts have also weighed in on the company. Sanford C. Bernstein reduced their price objective on Norfolk Southern from $322.00 to $313.00 and set an “outperform” rating for the company in a research report on Tuesday, March 31st. Wolfe Research upped their price objective on Norfolk Southern from $350.00 to $355.00 and gave the company an “outperform” rating in a research report on Tuesday, April 7th. Wells Fargo & Company increased their target price on Norfolk Southern from $365.00 to $385.00 and gave the company an “overweight” rating in a research note on Friday. Stephens raised Norfolk Southern to a “hold” rating in a research report on Wednesday, July 8th. Finally, UBS Group restated a “neutral” rating and set a $363.00 target price on shares of Norfolk Southern in a research note on Friday. Six investment analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $344.35.

Norfolk Southern Stock Performance

Norfolk Southern stock opened at $351.69 on Friday. Norfolk Southern has a fifty-two week low of $268.23 and a fifty-two week high of $358.60. The firm’s fifty day moving average price is $317.37 and its 200-day moving average price is $306.16. The stock has a market cap of $78.99 billion, a P/E ratio of 30.01, a price-to-earnings-growth ratio of 6.37 and a beta of 1.27. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.81 and a current ratio of 0.83.

Norfolk Southern (NYSE:NSC) last released its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.20. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The firm had revenue of $3.46 billion for the quarter, compared to analysts’ expectations of $3.38 billion. During the same quarter in the previous year, the company earned $3.29 earnings per share. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. On average, equities research analysts expect that Norfolk Southern will post 12.24 earnings per share for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Friday, August 7th will be given a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, August 7th. Norfolk Southern’s dividend payout ratio is presently 45.49%.

Institutional Trading of Norfolk Southern

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in Norfolk Southern by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 20,825,837 shares of the railroad operator’s stock valued at $6,012,836,000 after acquiring an additional 272,651 shares in the last quarter. State Street Corp increased its holdings in shares of Norfolk Southern by 4.1% in the fourth quarter. State Street Corp now owns 9,710,549 shares of the railroad operator’s stock worth $2,803,630,000 after purchasing an additional 379,819 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Norfolk Southern by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 4,878,029 shares of the railroad operator’s stock worth $1,401,797,000 after buying an additional 36,205 shares in the last quarter. Norges Bank purchased a new stake in shares of Norfolk Southern in the fourth quarter worth about $1,084,701,000. Finally, Pentwater Capital Management LP boosted its stake in Norfolk Southern by 9.8% during the fourth quarter. Pentwater Capital Management LP now owns 3,019,000 shares of the railroad operator’s stock valued at $871,646,000 after buying an additional 269,000 shares during the last quarter. 75.10% of the stock is currently owned by institutional investors.

Key Norfolk Southern News

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Norfolk Southern beat Q2 expectations, posting $3.52 in EPS and revenue above estimates, with revenue up 12.5% year over year and record quarterly sales. Reuters article
• Positive Sentiment: Wells Fargo raised its price target to $385 and reiterated an overweight rating, signaling confidence that the stock still has room to run. Benzinga article
• Positive Sentiment: Citigroup lifted its target to $376, reflecting a more constructive view after the earnings release, even though it kept a neutral rating. Benzinga article
• Neutral Sentiment: JPMorgan raised its target to $338 but maintained a neutral rating, suggesting valuation looks less compelling after the recent move higher. Benzinga article
• Neutral Sentiment: Some commentary noted lower profitability and margin pressure despite the revenue beat, which may temper enthusiasm if cost pressures persist. Seeking Alpha article
• Negative Sentiment: Profitability was held back by higher fuel costs and lower efficiency, showing that cost inflation remains a headwind even as demand improves. TipRanks article

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.