Mark George, President and CEO of
Norfolk Southern (NSC), recently bought 200 shares. The buy increased his stake by 1%, and came to a total cost of $49,967. One day later, a company director picked up 350 shares, increasing his position by 4%, at a cost of $87,280.
This follows a similar pattern, including two director pickups back in October, as well as buys in May, June, July and August. There have been just two insider sales over the past year.
Overall, Norfolk Southern insiders own 0.1% of shares.
The railroad is up 6% over the past year, significantly lagging the overall stock market. Operationally, the railroad has fared a bit better, seeing revenues rise 3% but earnings jump nearly 130% thanks to improving margins.
With the railroad’s profit margins now nearing 20%, it’s a strong sign that investors may see better returns in the stock going forward. Demand for rail services is typically a slow-growth part of the economy, but one that does trend higher over time.
Action to take: Norfolk Southern shares have been trending higher overall, and have sold off slightly over the past few weeks. This could be a reasonable long-term entry point for investors.
At current prices, Norfolk Southern also pays a 2.2% dividend.
For traders, the March 2025 $270 calls, last trading for about $5.50, could see mid-to-high double-digit returns is shares continue their long-term uptrend into the spring.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
