Norfolk Southern (NYSE:NSC) Stock Sees Heavy Call Option Buying

Norfolk Southern Corporation (NYSE:NSC) was the target of some unusual options trading on Wednesday. Investors bought 4,188 call options on the company. This is an increase of approximately 856% compared to the average daily volume of 438 call options.

Institutional Trading of Norfolk Southern

Institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC boosted its position in Norfolk Southern by 17.2% in the 2nd quarter. NewEdge Advisors LLC now owns 35,598 shares of the railroad operator’s stock valued at $11,199,000 after buying an additional 5,233 shares during the last quarter. B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Norfolk Southern in the second quarter worth about $3,669,000. SCS Capital Management LLC acquired a new position in shares of Norfolk Southern in the second quarter worth about $13,837,000. Focus Partners Advisor Solutions LLC purchased a new position in Norfolk Southern in the second quarter valued at about $1,376,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab boosted its holdings in Norfolk Southern by 29.2% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 54,620 shares of the railroad operator’s stock valued at $17,183,000 after purchasing an additional 12,350 shares during the last quarter. 75.10% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Royal Bank Of Canada raised their price target on Norfolk Southern from $330.00 to $350.00 and gave the stock a “sector perform” rating in a research note on Friday, October 23rd. Benchmark reissued a “hold” rating on shares of Norfolk Southern in a research report on Friday, July 24th. Robert W. Baird boosted their target price on shares of Norfolk Southern from $360.00 to $377.00 and gave the company a “neutral” rating in a report on Monday, July 27th. Barclays upped their price target on shares of Norfolk Southern from $360.00 to $400.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Finally, JPMorgan Chase & Co. increased their price target on shares of Norfolk Southern from $318.00 to $323.00 and gave the stock a “neutral” rating in a research note on Friday, October 23rd. Seven analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $348.81.

Norfolk Southern Stock Performance

Norfolk Southern stock opened at $333.12 on Friday. The company has a market cap of $74.83 billion, a price-to-earnings ratio of 27.92, a price-to-earnings-growth ratio of 4.90 and a beta of 1.20. Norfolk Southern has a 12 month low of $277.80 and a 12 month high of $358.60. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.90 and a quick ratio of 0.81. The stock’s 50-day moving average is $324.11 and its 200-day moving average is $316.92.

Norfolk Southern (NYSE:NSC) last posted its quarterly earnings results on Thursday, October 22nd. The railroad operator reported $3.62 EPS for the quarter, beating the consensus estimate of $3.46 by $0.16. The firm had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.48 billion. Norfolk Southern had a net margin of 20.70% and a return on equity of 18.22%. During the same quarter last year, the firm posted $3.30 earnings per share. Norfolk Southern’s revenue for the quarter was up 13.6% compared to the same quarter last year. Equities analysts anticipate that Norfolk Southern will post 12.90 earnings per share for the current year.

Norfolk Southern Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be issued a dividend of $1.35 per share. The ex-dividend date is Friday, November 6th. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. Norfolk Southern’s payout ratio is presently 45.26%.

About Norfolk Southern

Norfolk Southern Corporation is a freight transportation company that operates a major railroad network across the eastern United States. Its rail services connect businesses, ports and communities, and link with other railroads to move goods across North America. The company transports a broad range of products, including coal, chemicals, agricultural goods, automotive vehicles and parts, metals, construction materials and consumer products. Its services include intermodal transportation, which combines rail with truck or container shipping, as well as rail freight and logistics solutions.