Royal Bank Of Canada Downgrades Norfolk Southern (NYSE:NSC) to Hold

by · The Markets Daily

Royal Bank Of Canada cut shares of Norfolk Southern (NYSE:NSC – Free Report) from a moderate buy rating to a hold rating in a research note released on Tuesday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the company. Bank of America boosted their price target on Norfolk Southern from $290.00 to $305.00 and gave the stock a “buy” rating in a research note on Thursday, July 17th. Evercore ISI reissued an “in-line” rating and issued a $289.00 price objective (up previously from $279.00) on shares of Norfolk Southern in a report on Wednesday. Robert W. Baird increased their price target on shares of Norfolk Southern from $255.00 to $300.00 and gave the stock a “neutral” rating in a report on Tuesday, July 22nd. Jefferies Financial Group restated a “hold” rating and issued a $300.00 price objective on shares of Norfolk Southern in a research report on Friday, July 25th. Finally, BMO Capital Markets restated a “market perform” rating and set a $255.00 price target on shares of Norfolk Southern in a research report on Thursday, April 24th. Fourteen analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $285.15.

Get Our Latest Analysis on Norfolk Southern

Norfolk Southern Stock Performance

Norfolk Southern stock opened at $278.18 on Tuesday. The company has a 50 day moving average price of $259.28 and a 200-day moving average price of $244.45. The company has a market capitalization of $62.49 billion, a PE ratio of 18.80, a P/E/G ratio of 2.46 and a beta of 1.31. Norfolk Southern has a fifty-two week low of $201.63 and a fifty-two week high of $288.11. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.70 and a current ratio of 0.79.

Norfolk Southern (NYSE:NSC – Get Free Report) last posted its earnings results on Tuesday, July 29th. The railroad operator reported $3.29 earnings per share for the quarter, topping analysts’ consensus estimates of $3.24 by $0.05. The company had revenue of $3.11 billion during the quarter, compared to analyst estimates of $3.10 billion. Norfolk Southern had a return on equity of 19.35% and a net margin of 27.51%. As a group, equities analysts forecast that Norfolk Southern will post 13 earnings per share for the current year.

Norfolk Southern Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 20th. Shareholders of record on Friday, August 1st will be paid a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Friday, August 1st. Norfolk Southern’s dividend payout ratio is 36.89%.

Hedge Funds Weigh In On Norfolk Southern

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Brighton Jones LLC lifted its stake in 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 acquiring an additional 79 shares during the last quarter. Wellington Management Group LLP boosted its stake in Norfolk Southern by 3.6% in the fourth quarter. Wellington Management Group LLP now owns 23,882 shares of the railroad operator’s stock valued at $5,605,000 after acquiring an additional 820 shares in the last quarter. Bryce Point Capital LLC purchased a new position in Norfolk Southern during the 4th quarter worth approximately $505,000. World Investment Advisors grew its position in shares of Norfolk Southern by 2.9% during the fourth quarter. World Investment Advisors now owns 11,555 shares of the railroad operator’s stock worth $2,712,000 after acquiring an additional 329 shares during the last quarter. Finally, Arete Wealth Advisors LLC acquired a new position in Norfolk Southern in the fourth quarter valued at $339,000. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Company Profile

(Get Free Report)

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.

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