Troubles for Norfolk Southern (NYSE:NSC) continue to rise as one of its freight trains derailed in Ohio last Saturday. The rail transportation provider, however, assured that the train did not contain any hazardous materials and that no locals were hurt.
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This is the second accident the company has reported in a month’s time. On February 3, a Norfolk Southern train derailed in East Palestine, Ohio. The train carried millions of pounds of toxic chemicals, which got released in the nearby areas.
As part of the remediation plan, the company will be excavating the soil and replacing the tracks in the derailment area.
On another note, Norfolk Southern CEO Alan Shaw sold the company’s shares worth $448,000 on March 1. The full proceeds from the sale will be donated to fund college and vocational school scholarships for students in East Palestine.
This sale is part of a previously agreed-upon plan that the CEO put in place in May 2022. Under the terms of the plan, Shaw sells 2,000 shares of NSC stock every three months.
Is Norfolk Southern a Good Stock to Buy?
Norfolk Southern’s stock is under pressure, down about 10.3% since February 3, as accidents rise for the rail transportation provider. On TipRanks, the stock has a Moderate Buy consensus rating based on eight Buys and seven Holds. The average price target of $251.73 implies 10.2% upside potential.
