CSX Sees Unusually High Options Volume (NASDAQ:CSX)

CSX Corporation (NASDAQ:CSX) was the target of some unusual options trading activity on Monday. Traders purchased 32,791 call options on the stock. This is an increase of 95% compared to the average volume of 16,818 call options.

CSX Stock Performance

CSX opened at $51.80 on Tuesday. CSX has a twelve month low of $31.80 and a twelve month high of $53.60. The firm has a market capitalization of $95.96 billion, a PE ratio of 29.94, a PEG ratio of 2.48 and a beta of 1.21. The company has a current ratio of 0.82, a quick ratio of 0.72 and a debt-to-equity ratio of 1.22. The firm’s 50-day moving average price is $47.81 and its 200 day moving average price is $43.32.

CSX (NASDAQ:CSX) last released its quarterly earnings data on Wednesday, July 22nd. The transportation company reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02. The company had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.89 billion. CSX had a net margin of 22.21% and a return on equity of 24.98%. CSX’s quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.44 EPS. As a group, sell-side analysts expect that CSX will post 1.96 EPS for the current fiscal year.

CSX Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $0.56 dividend on an annualized basis and a yield of 1.1%. CSX’s payout ratio is 32.37%.

Key Stories Impacting CSX

Here are the key news stories impacting CSX this week:

• Positive Sentiment: Unusually heavy call-option activity indicated speculative bullish interest: investors purchased 32,791 calls, roughly 95% above the stock’s average daily call volume.
• Positive Sentiment: Citigroup reportedly expects further upside for CSX, reinforcing the view that recent earnings strength and an improving freight cycle could support the shares. CSX Stock Price Expected to Rise, Citigroup Analyst Says
• Positive Sentiment: Recent transportation results suggest freight conditions may be turning more favorable. CSX’s earnings strength and efficiency gains were viewed more positively than the fuel-cost pressures affecting some other transportation companies. CSX and Knight-Swift Show the Freight Cycle Is Turning

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on CSX shares. Bank of America boosted their price objective on CSX from $53.00 to $56.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Truist Financial set a $46.00 target price on CSX in a research report on Friday, July 10th. Raymond James Financial reaffirmed an “outperform” rating and issued a $56.00 price target on shares of CSX in a research note on Monday, July 13th. Morgan Stanley set a $32.00 price target on CSX and gave the stock an “underweight” rating in a research report on Monday, July 6th. Finally, Rothschild & Co Redburn boosted their price target on CSX from $45.50 to $47.50 and gave the stock a “buy” rating in a research report on Tuesday, April 28th. Seventeen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, CSX presently has an average rating of “Moderate Buy” and an average target price of $51.17.

Insider Buying and Selling at CSX

In related news, CFO Kevin S. Boone sold 136,708 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $46.70, for a total transaction of $6,384,263.60. Following the completion of the transaction, the chief financial officer owned 208,622 shares in the company, valued at $9,742,647.40. This represents a 39.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John J. Zillmer sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $46.45, for a total transaction of $464,500.00. Following the completion of the transaction, the director directly owned 353,714 shares in the company, valued at $16,430,015.30. This represents a 2.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company’s stock.

Institutional Trading of CSX

A number of hedge funds and other institutional investors have recently modified their holdings of CSX. WFA of San Diego LLC purchased a new position in shares of CSX during the 2nd quarter worth $28,000. Arlington Trust Co LLC grew its holdings in shares of CSX by 58.0% in the second quarter. Arlington Trust Co LLC now owns 681 shares of the transportation company’s stock valued at $32,000 after purchasing an additional 250 shares during the period. Wilkerson Advisory Group LLC grew its holdings in shares of CSX by 97.4% in the first quarter. Wilkerson Advisory Group LLC now owns 829 shares of the transportation company’s stock valued at $34,000 after purchasing an additional 409 shares during the period. Allied Private Wealth LLC acquired a new stake in CSX during the second quarter worth about $37,000. Finally, CrossGen Wealth LLC acquired a new stake in CSX during the fourth quarter worth about $54,000. 73.57% of the stock is owned by institutional investors and hedge funds.

About CSX

CSX Corporation is a leading North American transportation company that provides rail-based freight services and supply-chain solutions. Its operating subsidiary, CSX Transportation, moves a wide range of goods for customers across multiple industries, using a combination of long-haul rail service, intermodal operations and terminal and yard services. The company focuses on delivering efficient, reliable freight transportation between major production centers, consumption markets and port gateways.

CSX’s freight portfolio includes intermodal containers and trailers, bulk commodities, industrial products and specialized unit trains.