Investors Buy Large Volume of Norfolk Southern Call Options (NYSE:NSC)

Norfolk Southern Co. (NYSE:NSC) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 8,606 call options on the company. This represents an increase of approximately 305% compared to the typical volume of 2,127 call options.

Institutional Investors Weigh In On Norfolk Southern

Several institutional investors have recently bought and sold shares of the company. Provence Wealth Management Group purchased a new stake in shares of Norfolk Southern during the third quarter worth about $28,000. Exchange Traded Concepts LLC raised its holdings in shares of Norfolk Southern by 662.5% in the fourth quarter. Exchange Traded Concepts LLC now owns 122 shares of the railroad operator’s stock worth $29,000 after buying an additional 106 shares during the last quarter. Operose Advisors LLC acquired a new stake in shares of Norfolk Southern during the third quarter worth $32,000. Orion Capital Management LLC purchased a new stake in shares of Norfolk Southern during the third quarter valued at $32,000. Finally, Turtle Creek Wealth Advisors LLC acquired a new position in shares of Norfolk Southern in the 4th quarter valued at $32,000. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Norfolk Southern Trading Down 3.2 %

Shares of NSC traded down $7.83 during mid-day trading on Wednesday, reaching $237.20. 781,237 shares of the company’s stock traded hands, compared to its average volume of 1,258,952. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.24 and a quick ratio of 1.14. The stock’s 50-day moving average is $252.66 and its two-hundred day moving average is $232.09. Norfolk Southern has a 12 month low of $183.09 and a 12 month high of $263.66. The stock has a market cap of $58.40 billion, a P/E ratio of 30.55, a P/E/G ratio of 3.34 and a beta of 1.30.

Norfolk Southern (NYSE:NSC) last announced its quarterly earnings results on Friday, January 26th. The railroad operator reported $2.83 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.87 by ($0.04). The firm had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.09 billion. Norfolk Southern had a net margin of 15.03% and a return on equity of 21.06%. The firm’s revenue for the quarter was down 4.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.42 EPS. Research analysts forecast that Norfolk Southern will post 11.93 earnings per share for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 20th. Stockholders of record on Friday, May 3rd will be given a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 2.28%. Norfolk Southern’s payout ratio is currently 67.33%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Susquehanna reduced their price objective on shares of Norfolk Southern from $270.00 to $265.00 and set a “neutral” rating for the company in a research report on Wednesday, April 10th. BMO Capital Markets lowered their price target on Norfolk Southern from $250.00 to $245.00 and set a “market perform” rating on the stock in a research report on Monday, January 29th. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $270.00 price objective on shares of Norfolk Southern in a research note on Wednesday, April 10th. Barclays upgraded Norfolk Southern from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $255.00 to $305.00 in a research report on Wednesday, February 21st. Finally, Citigroup boosted their price objective on shares of Norfolk Southern from $253.00 to $286.00 and gave the company a “buy” rating in a research report on Thursday, February 8th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and thirteen have issued a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $262.74.

Norfolk Southern Company Profile

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.