Norfolk Southern Sold by SCCM after Union Pacific’s Buyout, Shares Up 28%
SCCM’s Enhanced Equity Income Fund sold its Norfolk Southern stake in Q4 2025 after Union Pacific announced a planned acquisition closing in early 2027. Shares had risen 28.4% over 52 weeks to $314.74, driven by the takeover bid, strong merchandise revenue, and an improving operating ratio.
1. SCCM Exits NSC Position
In its Q4 2025 portfolio review, SCCM’s Enhanced Equity Income Fund disclosed the sale of its Norfolk Southern stake, which it had held since May 2025. The fund cited Norfolk Southern’s 22x earnings multiple and sub-2% dividend yield versus Union Pacific’s lower P/E and higher yield as key reasons to rotate into Union Pacific shares.
2. Union Pacific Acquisition Timeline
Union Pacific announced its agreement to acquire Norfolk Southern with regulatory approval processes underway and an expected deal close by early 2027. The acquisition bid significantly lifted Norfolk Southern’s share price, prompting investors to reassess railroad sector valuations and yield dynamics.
3. Norfolk Southern Market Metrics
As of February 27, 2026, Norfolk Southern shares closed at $314.74, reflecting a one-month gain of 7.97% and a 52-week rally of 28.39%. The company’s $70.7 billion market capitalization and improving operating ratio underpinned investor enthusiasm ahead of the takeover.