Claude E. Elkins, the Executive Vice President and Chief Marketing Officer of Norfolk Southern Corp (NYSE:NSC), has sold a significant portion of his company stock, according to a recent SEC filing. On May 10, 2024, Elkins sold 8,329 shares at prices ranging between $227.6778 and $229.1, totaling over $1.9 million.
The transactions were part of a series of stock activities that included both acquisitions and disposals of Norfolk Southern shares. On the same day, Elkins also acquired a total of 4,140 shares through the exercise of stock options, with prices ranging from $70.32 to $120.25, amounting to $410,628. These transactions reflect the exercise and subsequent cancellation of stock options that were exempt from Section 16(b) under the company's Long-Term Incentive Plan.
Following the sales, Elkins no longer holds direct ownership of common stock in the company, as indicated by a balance of zero shares. However, it should be noted that he indirectly owns an estimated 127 shares of common stock through the Norfolk Southern Corporation (NYSE:NSC) Thrift and Investment Plan (TIP), a 401(k) plan, as of May 10, 2024. The indirect ownership is based on the unit accounting system used by the Plan Administrator, with acquisitions made at various times and prices.
The recent SEC filing was signed by Denise W. Hutson via power of attorney for Claude E. Elkins and dated May 14, 2024. It is worth mentioning that the SEC filing provides a snapshot of Elkins' transactions and holdings as of a specific date and may have changed since then. Investors and the market often monitor such filings to gauge the confidence of company insiders in the firm’s prospects.
InvestingPro Insights
In light of the recent stock transactions by Norfolk Southern Corp's (NYSE:NSC) Executive Vice President and Chief Marketing Officer, Claude E. Elkins, investors may find the following real-time data and InvestingPro Tips informative. Norfolk Southern's market capitalization stands at a robust $51.95 billion, reflecting its significant presence in the industry. However, the company is currently trading at a high earnings multiple, with a P/E ratio of 36.83, which is above the industry average, suggesting investors are expecting higher earnings growth in the future.
The company's commitment to shareholder returns is evident, as it has raised its dividend for 7 consecutive years and maintained dividend payments for an impressive 43 consecutive years. This consistency can be appealing to income-focused investors, especially considering the current dividend yield of 2.35%. Yet, it's worth noting that 10 analysts have revised their earnings estimates downwards for the upcoming period, which could be a sign of potential challenges ahead.
InvestingPro Tips also reveal that Norfolk Southern's stock generally trades with low price volatility, which might be attractive to risk-averse investors. However, a point of concern is that the company's short-term obligations exceed its liquid assets, indicating potential liquidity risks that warrant attention.
For those looking to delve deeper into the financial health and future prospects of Norfolk Southern, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/NSC, readers can access these insights and further enrich their understanding of the company. Moreover, using the coupon code PRONEWS24, readers can obtain an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of financial data and expert analysis that can guide their investment decisions.
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