15 Stocks Targeted By Activist Hedge Funds

8. Norfolk Southern Corporation (NYSE:NSC)

Company Market Cap as of December 31: $53.10 Billion

Number of Hedge Fund Holders: 47

Norfolk Southern Corporation (NYSE:NSC) is an industrial company that engages in the rail transportation of raw materials, intermediate products, and finished goods. It transports agriculture, forest, and consumer products. While the stock was flat for the year in 2024, it was one of the stocks targeted by activist hedge funds for the better part of the year.

Ancora Advisors was the first activist hedge fund to launch a campaign urging investors to vote to replace the company’s chief executive, Alan Shaw, and appoint new directors to its board. The campaign came after one of the company’s freight trains was involved in an accident in Ohio that spilled hazardous chemicals.

Nevertheless, the hedge fund pushed for management change, overhauling the company’s business strategy to help bolster profits. Norfolk Southern Corporation (NYSE:NSC) was forced to strike a deal with the activist hedge fund to avert a second proxy fight. The agreement expanded the company’s board to 14 from 13, giving the activist investor seven seats. The deal follows the ousting of former CEO Alan Shaw over an inappropriate workplace relationship with the company’s chief legal officer.

Amid the activist campaign, Norfolk Southern Corporation (NYSE:NSC) has embarked on a cost-cutting drive as it looks to drive value across its business. In the third quarter, the company reduced more than 130 crew starts per day and cut costs by 8%. It has also improved productivity in locomotive utilization, with an 18% boost in productivity and a reduction in fleet size.