Billionaire Investor Slashes Norfolk Southern Stake — And...

Hedge fund billionaire Daniel Loeb reshuffled his exposure in the railroad industry at Third Point LLC in the fourth quarter of FY25.

The investor opened a new position in CSX Corporation (NASDAQ:CSX), acquiring 500,000 shares in the quarter.

Also, he boosted interest in Union Pacific Corporation (NYSE:UNP) by 107% to 1.81 million.

Meanwhile, he slashed the stake in Norfolk Southern Corp. (NYSE:NSC) by 41% to 975,000 shares.

Union Pacific: Recent Key Events

The company reported fourth-quarter adjusted EPS of $2.86, which missed the analyst estimate of $2.87. Operating revenue decreased 1% to $6.09 billion, which missed the analyst estimate of $6.12 billion.
The company projected a 2026 outlook for EPS growth, consistent with attaining the 3-year CAGR target of high-single digit to low-double digit through 2027. The capital plan is $3.3 billion.
Union Pacific penned a deal with Westinghouse Air Brake Technologies Corporation (NYSE:WAB) for the largest locomotive modernization investment in rail industry history. The companies inked a deal for $1.2 billion to modernize the railroad's AC4400 locomotives.
The company penned a seven-year deal with Rocky Mountain Steel Mills to supply domestically produced steel rails, highlighting focus on sourcing the majority of its rail needs from U.S.-based manufacturers.

CSX: Recent Key Events

CSX reported quarterly earnings of 39 cents per share, which missed the consensus estimate of 42 cents. Quarterly revenue came in at $3.51 billion, which missed the estimate of $3.54 billion.
Several analysts made changes to their price forecast following the earnings announcement. Evercore ISI Group analyst Jonathan Chappell maintained an Outperform rating and lowered the price forecast from $41 to $40. Bernstein analyst David Vernon maintained a Market Perform and lowered the price forecast from $37 to $36.
The company raised its quarterly dividend per share to 14 cents from 13 cents

Norfolk Southern: Recent Key Events

Norfolk Southern reported EPS of $3.22, which beat the consensus estimate of $2.76. Sales of $3.00 billion, which missed the consensus estimate of $3.001 billion.
The company partnered with Jaguar Transport Holdings to boost freight capacity, enhance local service, and drive growth for rail-served and transload customers in northeast metro Atlanta.

UNP: Technical Analysis & ETF Exposure

Union Pacific is sitting in the upper half of its 52-week range, not far from the $268.14 high, which points to buyers still defending the bigger-picture uptrend. Over the past 12 months, the stock is up 15.99%, which fits with a longer-term uptrend that's been able to recover from pullbacks.

Top ETF Exposure:

First Trust Nasdaq Transportation ETF (NASDAQ:FTXR): 7.96% Weight
Scharf ETF (NASDAQ:KAT): 4.57% Weight
Virtus Total Return Fund Inc (NYSE:ZTR): 4.89% Weight

CSX: Technical Analysis & ETF Exposure

CSX is pressing into the top end of its 52-week range, a setup that often reflects sustained buyer control rather than a one-day bounce. The stock is up 57.50% over the past 12 months, which is consistent with a longer-term uptrend that has been rewarding dip-buying.

Top ETF Exposure

Global X US Infrastructure Development ETF (BATS:PAVE): 3.41% Weight
iShares US Transportation ETF (BATS:IYT): 4.62% Weight
First Trust Nasdaq Transportation ETF (NASDAQ:FTXR): 4.38% Weight

NSC: Technical Analysis & ETF Exposure

Norfolk Southern is holding near the top of its 52-week range, sitting below the $319.94 high but far above the $212.24 low, which indicates buyers have controlled the longer trend. Over the last 12 months, the stock is up 39.34%, a run that fits with its current position near prior highs.