Norfolk Southern (NYSE:NSC) Hits New 52-Week High – Should You Buy?

Norfolk Southern Corporation (NYSE:NSC)’s share price reached a new 52-week high during trading on Thursday . The company traded as high as $335.44 and last traded at $335.7240, with a volume of 20755 shares traded. The stock had previously closed at $328.54.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Wolfe Research lifted their target price on Norfolk Southern from $350.00 to $355.00 and gave the company an “outperform” rating in a research report on Tuesday, April 7th. Royal Bank Of Canada reduced their price target on shares of Norfolk Southern from $360.00 to $320.00 and set a “sector perform” rating on the stock in a research note on Wednesday, June 24th. BMO Capital Markets boosted their target price on shares of Norfolk Southern from $305.00 to $310.00 and gave the stock a “market perform” rating in a research note on Monday, April 27th. Stephens upgraded Norfolk Southern to a “hold” rating in a research note on Wednesday, July 8th. Finally, Wells Fargo & Company raised their price objective on Norfolk Southern from $350.00 to $365.00 and gave the company an “overweight” rating in a report on Wednesday, July 8th. Seven analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $328.00.

Norfolk Southern Trading Up 3.0%

The company has a market cap of $76.03 billion, a P/E ratio of 28.53, a PEG ratio of 5.97 and a beta of 1.27. The firm’s 50 day moving average is $313.74 and its two-hundred day moving average is $303.83. The company has a quick ratio of 0.81, a current ratio of 0.91 and a debt-to-equity ratio of 1.04.

Norfolk Southern (NYSE:NSC) last released its quarterly earnings results on Friday, April 24th. The railroad operator reported $2.65 EPS for the quarter, beating analysts’ consensus estimates of $2.49 by $0.16. The firm had revenue of $3 billion for the quarter, compared to analyst estimates of $3.13 billion. Norfolk Southern had a return on equity of 18.30% and a net margin of 21.91%.The business’s revenue was up .2% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.69 EPS. As a group, equities research analysts anticipate that Norfolk Southern Corporation will post 12.24 EPS for the current year.

Norfolk Southern Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Friday, May 8th were given a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Friday, May 8th. Norfolk Southern’s dividend payout ratio is currently 45.49%.

Institutional Investors Weigh In On Norfolk Southern

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in Norfolk Southern by 1.3% in 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 during the period. State Street Corp raised its position in shares of Norfolk Southern by 4.1% during 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 period. Geode Capital Management LLC lifted its holdings in shares of Norfolk Southern by 0.7% in the 4th quarter. Geode Capital Management LLC now owns 4,878,029 shares of the railroad operator’s stock worth $1,401,797,000 after purchasing an additional 36,205 shares in the last quarter. Norges Bank bought a new position in shares of Norfolk Southern in the 4th quarter worth $1,084,701,000. Finally, Pentwater Capital Management LP grew its position in Norfolk Southern by 9.8% in the 4th quarter. Pentwater Capital Management LP now owns 3,019,000 shares of the railroad operator’s stock valued at $871,646,000 after purchasing an additional 269,000 shares during the period. 75.10% of the stock is owned by institutional investors.

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.