Norfolk Southern Boosts Price Target to $278 Following Analyst Upgrades
Norfolk Southern Corporation (NYSE:NSC) has seen its price target increased from $235.00 to $278.00 by Loop Capital, as noted in a research note published on Tuesday. The firm currently maintains a hold rating on the railroad operator’s stock, reflecting its cautious yet optimistic outlook amidst a fluctuating market.
Several other analysts have also recently adjusted their evaluations of Norfolk Southern. Notably, on July 21, 2023, Sanford C. Bernstein raised its price target for the company from $295.00 to $305.00, assigning an “outperform” rating. Similarly, Goldman Sachs reiterated a “neutral” rating with a price target of $278.00 in a report dated June 2, 2023. Baird R W upgraded Norfolk Southern to a “hold” rating on July 1, 2023, while Bank of America increased its price objective from $290.00 to $305.00, issuing a “buy” rating on July 17, 2023. Citigroup also raised its price target to $305.00 from $288.00, maintaining a “neutral” stance in its analysis dated July 30, 2023.
A review of the consensus ratings indicates that seven analysts have marked the stock with a buy rating, while fourteen have assigned a hold rating. According to data from MarketBeat.com, Norfolk Southern currently holds an average rating of “hold” and a consensus target price of $286.25.
Recent Earnings and Dividend Announcements
Norfolk Southern recently reported its quarterly earnings results on July 29, 2023. The company announced earnings per share of $3.29, surpassing the consensus estimate of $3.24 by $0.05. The railroad operator also achieved a return on equity of 19.35% and a net margin of 27.51%. Revenue for the quarter reached $3.11 billion, slightly exceeding analysts’ expectations of $3.10 billion.
In addition to its earnings report, Norfolk Southern declared a quarterly dividend of $1.35, which was paid to shareholders on August 20, 2023. The ex-dividend date was August 1, 2023, and this dividend represents an annualized payout of $5.40, yielding approximately 1.9%. The company’s payout ratio stands at 36.49%, indicating a balanced approach to returning value to shareholders.
Institutional Investment Trends
Recent trends show significant activity among institutional investors regarding Norfolk Southern shares. Valeo Financial Advisors LLC increased its stake by 3.5% during the second quarter, now holding 7,615 shares valued at approximately $1.95 million after acquiring an additional 259 shares. Osaic Holdings Inc. raised its investment in Norfolk Southern by 19.3%, owning 49,162 shares valued at about $12.54 million following the purchase of 7,957 shares.
Orion Portfolio Solutions LLC also expanded its stake by 16.5%, now holding 31,690 shares valued at around $8.11 million after adding 4,482 shares. Additionally, MASTERINVEST Kapitalanlage GmbH acquired a new stake valued at $224,000 during the same period. Pathway Financial Advisers LLC grew its position by 3.2%, now owning 3,929 shares worth $1.01 million following a purchase of 123 shares. Currently, institutional investors and hedge funds collectively own 75.10% of Norfolk Southern’s stock.
Norfolk Southern Corporation plays a vital role in the transportation of various goods across the United States. The company specializes in moving raw materials, intermediate products, and finished goods, including agricultural products, chemicals, metals, and automotive goods.
As analysts continue to monitor Norfolk Southern’s performance, the railroad operator remains a key player in the logistics and transportation sector. The latest upgrades and solid financial results suggest a stable outlook for the company moving forward.
