Norfolk Southern (NYSE:NSC) Reaches New 1-Year High – Should You Buy?

Norfolk Southern Corporation (NYSE:NSC) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $304.24 and last traded at $302.20, with a volume of 105877 shares changing hands. The stock had previously closed at $298.32.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on NSC shares. Barclays lowered their target price on shares of Norfolk Southern from $340.00 to $320.00 and set an “overweight” rating for the company in a research note on Friday. Morgan Stanley upgraded shares of Norfolk Southern from an “equal weight” rating to a “buy” rating in a research note on Thursday, December 18th. UBS Group reduced their target price on shares of Norfolk Southern from $321.00 to $320.00 and set a “buy” rating on the stock in a research report on Friday, October 24th. BMO Capital Markets boosted their price target on Norfolk Southern from $285.00 to $305.00 and gave the company a “market perform” rating in a report on Friday, October 24th. Finally, Citigroup dropped their price objective on Norfolk Southern from $317.00 to $300.00 and set a “neutral” rating on the stock in a research note on Friday, January 30th. Eight investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Norfolk Southern currently has an average rating of “Hold” and a consensus price target of $303.32.

Norfolk Southern Price Performance

The firm has a market capitalization of $68.16 billion, a PE ratio of 23.80, a P/E/G ratio of 5.18 and a beta of 1.34. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.78 and a current ratio of 0.85. The stock has a fifty day moving average price of $290.74 and a 200-day moving average price of $286.33.

Norfolk Southern (NYSE:NSC) last issued its quarterly earnings data on Thursday, January 29th. The railroad operator reported $3.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.76 by $0.46. The company 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 for the quarter was down 1.7% compared to the same quarter last year. During the same quarter last year, the company earned $3.04 earnings per share. Sell-side analysts forecast that Norfolk Southern Corporation will post 13 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 20th. Investors of record on Friday, February 6th will be paid a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, February 6th. Norfolk Southern’s payout ratio is 42.35%.

Insider Buying and Selling

In related news, EVP Anil Bhatt sold 900 shares of the company’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $281.60, for a total transaction of $253,440.00. Following the transaction, the executive vice president directly owned 1,413 shares of the company’s stock, valued at $397,900.80. This represents a 38.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director William Jr. Clyburn purchased 204 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were acquired at an average price of $294.79 per share, for a total transaction of $60,137.16. Following the purchase, the director directly owned 405 shares of the company’s stock, valued at approximately $119,389.95. The trade was a 101.49% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.06% of the company’s stock.

Institutional Trading of Norfolk Southern

Several large investors have recently bought and sold shares of NSC. Brighton Jones LLC raised its stake in shares of Norfolk Southern by 4.9% in the fourth quarter. Brighton Jones LLC now owns 1,706 shares of the railroad operator’s stock worth $400,000 after purchasing an additional 79 shares during the last quarter. Intech Investment Management LLC increased its holdings in Norfolk Southern by 40.4% in the 1st quarter. Intech Investment Management LLC now owns 6,447 shares of the railroad operator’s stock worth $1,527,000 after buying an additional 1,855 shares during the period. Sivia Capital Partners LLC acquired a new position in Norfolk Southern in the 2nd quarter worth approximately $327,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its position in Norfolk Southern by 5.6% during the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 902 shares of the railroad operator’s stock worth $231,000 after buying an additional 48 shares during the last quarter. Finally, Wealthcare Advisory Partners LLC lifted its stake in Norfolk Southern by 6.8% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 2,563 shares of the railroad operator’s stock valued at $656,000 after acquiring an additional 164 shares during the period. Hedge funds and other institutional investors own 75.10% of the company’s stock.

About Norfolk Southern

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.