On September 24, 2023, it was reported that Trust Co. of Vermont increased its stake in Norfolk Southern Co. (NYSE:NSC) by 2.0% during the second quarter of the year. According to the company’s filing with the SEC, Trust Co. of Vermont now owns 27,832 shares of Norfolk Southern’s stock after acquiring an additional 537 shares in the same period. The total value of Trust Co. of Vermont’s holdings in Norfolk Southern amounts to $6,311,000 as of the most recent reporting period.
Norfolk Southern (NYSE:NSC) recently released its earnings results on Thursday, July 27th. The railroad operator reported an EPS (earnings per share) of $2.95 for the quarter, falling short of the consensus estimate by $0.20. Despite missing estimates, Norfolk Southern demonstrated a return on equity of 24.88% and a net margin of 20.25%. The firm generated $2.98 billion in revenue during the quarter, which was slightly below analyst expectations set at $3.08 billion for the same period.
Comparing this performance to the previous year, Norfolk Southern experienced a decline in revenue by 8.3%. In Q2 of last year, they posted an EPS figure of $3.45, indicating a decrease from their current performance level this year.
Sell-side analysts have projected that Norfolk Southern Co.’s earnings per share for the full fiscal year will amount to $12.43.
Overall, these developments reveal insights into both Trust Co. of Vermont’s confidence in investing further into Norfolk Southern and provide a comprehensive view into Norfolk Southern’s financial performance over time.
References:
1.&Trust Co., “Form 13F-HR” (SEC Filing). Retrieved September 23rd, 2023 from https://www.sec.gov/Archives/edgar/data/49134/000119312520204900/d781664d13fhr.htm
2. Norfolk Southern Co., “Norfolk Southern reports solid second-quarter 2023 financial results.” Retrieved September 23rd, 2023 from https://www.nscorp.com/content/nscorp/en/news/norfolk-southern-reports-solid-second-quarter-2023-financial-results.html
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Recent Investor Activity and Analyst Sentiment Suggest Favorable Outlook for Norfolk Southern Co.
September 24, 2023 – Norfolk Southern Co., a leading railroad operator, has recently witnessed changes in its stock positions by several large investors. Geode Capital Management LLC saw a slight increase of 0.3% in its holdings in shares of Norfolk Southern during the first quarter. This brought Geode Capital’s total holdings to 4,112,708 shares worth $869,600,000 after acquiring an additional 13,513 shares in the last quarter.
Moneta Group Investment Advisors LLC experienced a significant surge in its stake in Norfolk Southern during the fourth quarter of the previous year. Its holdings skyrocketed by 95,518.3%, bringing their total shares to 3,028,232 worth $746,217,000 after purchasing an additional 3,025,065 shares.
Price T Rowe Associates Inc. MD also increased its stake in Norfolk Southern during the same period by 86.7%. The firm now owns 2,724,821 shares worth $671,451,000 after acquiring an additional 1,265,666 shares.
Morgan Stanley followed suit with a stake increase of 33.5% during the fourth quarter. Morgan Stanley’s total ownership now amounts to 2,546,214 shares worth $627,438. This was achieved through the purchase of an additional 638384 shares.
Norges Bank made a notable entry as they purchased a new stake in Norfolk Southern during the fourth quarter with an approximate value of $537017000.
Currently institutional investors and hedge funds account for approximately 72.37% ownership of Norfolk Southern stock.
NSC stock traded at $202.50 during mid-day trading on Friday with a trading volume of about1 ,059 ,313 shares compared to its daily average volume of around1 ,203 ,716 shares.
Norfolk Southern Co.’s share prices had hit their lowest point at $194.05 over the past year and reached their peak at $261.71.
The firm currently boasts a market capitalization of $45.97 billion along with a PE ratio of 18.21 and a PEG ratio of 2.43. The beta stands at 1.29, and Norfolk Southern has a debt-to-equity ratio of 1.15.
Furthermore, it has a current ratio of 0.68 and a quick ratio of 0.59.
Norfolk Southern recently announced the declaration of its quarterly dividend, which was paid to stockholders on Monday, August 21st. Shareholders recorded as of Friday, August 4th were entitled to a $1.35 dividend, following the ex-dividend date on Thursday, August 3rd.
This equates to an annualized dividend totaling $5.40 per share and reflected by a dividend yield of about 2.67%. At present, Norfolk Southern’s dividend payout ratio is approximately 48.56%.
Several equities research analysts have expressed their opinions on Norfolk Southern stock recently.
Royal Bank of Canada upgraded their target price from $210 to $227 in their research note published on Friday, July 28th.
Vertical Research also raised its rating on Norfolk Southern from “hold” to “buy” with a price objective set at $260 in their research report issued on Tuesday, July 11th.
TD Cowen increased the price objective for Norfolk Southern shares from $243 to $253 while giving the company an “outperform” rating in another research report published on Friday, July 28th.
Stifel Nicolaus also raised its price target from $242 to $262 in a research report released on Monday, July17th while Bank Of America upgraded its rating from$226 to$253 in yet another report published on Tuesday On July11 th .
In total, there are thirteen investment analysts who have provided hold ratings for Norfolk Southern stock, while fourteen have issued buy ratings. According to data from Bloomberg, the average rating for Norfolk Southern is currently “Moderate Buy” with a consensus price target of $245.40.
In conclusion, the recent changes in positions held by large investors and the positive sentiment expressed by various equities research analysts indicate a favorable outlook for Norfolk Southern Co. These factors combined with the company’s strong market capitalization and financial ratios suggest that Norfolk Southern Co. is poised for continued success in the railroad industry.
