Norfolk Southern Trading Volume Surges to $300 Million Ranking 282nd in Daily Volume

On March 26, 2025, Norfolk Southern Corporation (NSC) saw a significant increase in trading volume, reaching $300 million, marking a 36.21% rise from the previous day. This surge placed NSC at the 282nd position in terms of trading volume for the day. The stock price of NSC also rose by 0.75%.

Norfolk Southern has been actively rewarding its shareholders through dividends and buybacks. In 2023, the company returned $1.847 billion to its shareholders, comprising $1.225 billion in dividends and $622 million in share buybacks. The company's board announced a 9% increase in its quarterly dividend payout in January 2023, marking the fourth dividend hike in a year. This strong free cash flow generation supports NSC's shareholder-friendly activities.

E-commerce growth continues to be a significant tailwind for Norfolk Southern, driving demand for intermodal services. Despite a slowdown in growth from pandemic peaks, e-commerce demand remains robust, supporting the company's shipment volumes. Norfolk Southern employs the Precision Scheduled Railroading (PSR) operating plan to reduce costs and enhance services, with recent improvements in network performance, safety, and service. The company aims to reduce greenhouse gas emissions by 42% by 2034 and improve locomotive fuel efficiency by 13% by 2027.

However, macroeconomic concerns and high debt levels pose risks to NSC's stock. Economic uncertainties, including tariff-related issues and inflation, have led to recessionary fears, affecting consumer spending and business investments. Norfolk Southern's high debt levels, resulting from fixed asset buildup, are a concern. The company expects property additions of approximately $2.2 billion for 2025, with long-term debt reaching $16.6 billion by the end of 2024. Higher interest expenses are impacting profitability, particularly in the weak economic environment. The company's times interest earned ratio of 4.8 is lower than the industry average of 7.1.