Former Norfolk Southern CEO Alan Shaw sells more than $13 million in stock By Investing.com
Alan H. Shaw, former CEO of Norfolk Southern Corp (NYSE:NSC), recently sold a large amount of the company's stock, according to a new SEC filing. The transaction, which took place on September 13, 2024, involved the sale of 51,325 shares at a price of $255.9825 each, amounting to $13,138,301.
The filing also revealed a series of stock options Shaw made prior to the sale. The transaction, part of the company's long-term incentive plan, allowed Shaw to acquire shares at prices ranging from $70.32 to $241.18. The total value of these shares received amounted to $6,672,721. It is important to note that the exercise and subsequent sale of these options were made in a single transaction, exempt from Section 16(b) of the Securities Exchange Act of 1934.
Shaw's actions in the market were part of his stock split plan following his departure as CEO and director of the company. The filing also showed that Shaw has indirect ownership in Norfolk Southern through the company's 401(k) plan, with about 1,849 shares estimated to be in his account as of the date of the report.
Investors often monitor the buying and selling activities of company executives as this can provide insight into the leadership's vision of the company's future performance. Shaw's transaction represents a major change in his investment in Norfolk Southern, one of the nation's leading transportation companies.
For shareholders and potential investors in Norfolk Southern, looking at those books can be an important part of understanding the stock's performance and the confidence that company insiders have in the direction of the business.
In other recent news, Norfolk Southern Corporation (NYSE: ) has seen significant changes in its leadership and financial performance. The company announced the immediate resignation of Alan H. Shaw from the Board of Directors, at the same time appointing Brian Barr as Vice President and Chief Mechanical Officer, and Jason A. Zampi as Senior Vice President, Chief Financial Officer, and Treasurer.
The company also reported revenue of $694 million and adjusted operating income of $1.1 billion for the latest quarter. In addition to the revised annual revenue growth of approximately 1%, Norfolk Southern is investing more than 200 million dollars to increase the capacity of the 3B Corridor, an important rail line in Alabama, which will start operating in 2025.
In labor relations, Norfolk Southern has reached collective bargaining agreements with nine trade unions, representing approximately 55% of its combined workforce. The agreements propose an average wage increase of 3.5 percent per year over five years, more vacation time before work, and improvements to current health care benefits.
Analysts from Loop Capital, Benchmark, RBC Capital, and Evercore ISI adjusted their price targets on Norfolk Southern, indicating confidence in the company's progress. These recent developments highlight Norfolk Southern's focus on improving service quality, managing costs, and implementing growth strategies.
InvestingPro Insights
To provide more context to Alan H. Shaw's recent stock purchases, let's examine some key financial metrics and data for Norfolk Southern Corp (NYSE:NSC) from InvestingPro.
According to the latest data, Norfolk Southern has a market capitalization of 56.06 billion dollars, which shows its significant presence in the transportation sector. The company's P/E ratio stands at 31.41, which corresponds to InvestingPro's tip indicating that NSC is “Trading at multiple earnings.” This valuation metric suggests that investors are willing to pay a company's earnings premium, possibly due to growth expectations or the company's strong market position.
Another good InvestingPro tip highlights that Norfolk Southern has “Maintained dividend payments for 43 consecutive years.” This impressive record of consistent earnings underscores the company's financial stability and commitment to shareholder returns, which may be of great interest to income-oriented investors.
The company's revenue for the last twelve months from Q2 2024 was reported at $12.09 billion, with a gross margin of 43.85%. These figures demonstrate Norfolk Southern's ability to generate significant revenue and maintain a healthy profit margin in a competitive transportation industry.
It's worth noting that InvestingPro offers more tips and insights than what we've discussed here. In fact, there are 9 InvestingPro tips available on Norfolk Southern, which can provide valuable information to investors when considering the stock versus recent insider trading.
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