CSX (NASDAQ:CSX) Hits New 12-Month High – Time to Buy?

Shares of CSX Corporation (NASDAQ:CSX) hit a new 52-week high on Monday . The stock traded as high as $49.29 and last traded at $49.17, with a volume of 522721 shares traded. The stock had previously closed at $48.89.

CSX News Roundup

Here are the key news stories impacting CSX this week:

• Positive Sentiment: Robert W. Baird raised its price target on CSX to $53 from $49 and kept an outperform rating, signaling confidence in additional upside for the rail operator. Benzinga
• Positive Sentiment: CSX saw unusually large call-option buying, with traders purchasing 23,447 calls versus a typical 12,676, which can indicate rising investor expectations for a near-term move higher.
• Neutral Sentiment: A Railway Age roundup on Class I railroads included CSX, but the available headline does not indicate a major new company-specific catalyst. Class I Briefs: CN, CPKC, CSX
• Neutral Sentiment: News of CSX railroad crossing closures in Shelby County may affect local travel, but the headline alone does not suggest a material earnings impact. CSX railroad crossing closures to impact travel across Shelby County
• Negative Sentiment: Multiple headlines about pedestrians being struck by CSX trains could raise safety and reputational concerns, though they are unlikely to change fundamentals on their own. Pedestrian hospitalized after being hit by a CSX Train in Troy
• Negative Sentiment: Another reported train-related incident in Miami County adds to the safety-related headlines weighing on sentiment. Person hit by CSX Train in Miami County
• Negative Sentiment: A Yahoo Finance piece flagged CSX among “unpopular stocks” that analysts view cautiously, which may add some downside sentiment. 3 Unpopular Stocks We Approach with Caution

Analysts Set New Price Targets

CSX has been the topic of a number of research analyst reports. Raymond James Financial boosted their price target on shares of CSX from $45.00 to $49.00 and gave the company an “outperform” rating in a research note on Thursday, April 23rd. Barclays reiterated an “overweight” rating and issued a $55.00 target price (up from $47.00) on shares of CSX in a report on Thursday, June 25th. Wolfe Research reissued an “outperform” rating and issued a $50.00 target price on shares of CSX in a research report on Thursday, April 23rd. Jefferies Financial Group upped their price target on CSX from $50.00 to $52.00 and gave the stock a “buy” rating in a research note on Thursday, April 23rd. Finally, Rothschild & Co Redburn lifted their price objective on CSX from $45.50 to $47.50 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $47.42.

CSX Price Performance

The stock’s 50 day moving average is $46.34 and its two-hundred day moving average is $41.94. The stock has a market capitalization of $90.14 billion, a PE ratio of 29.76, a price-to-earnings-growth ratio of 2.44 and a beta of 1.21. The company has a debt-to-equity ratio of 1.34, a current ratio of 0.97 and a quick ratio of 0.83.

CSX (NASDAQ:CSX) last posted its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.39 by $0.04. CSX had a net margin of 21.55% and a return on equity of 24.47%. The company had revenue of $3.48 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same quarter in the previous year, the business posted $0.34 EPS. The firm’s revenue was up 1.7% on a year-over-year basis. As a group, sell-side analysts forecast that CSX Corporation will post 1.9 earnings per share for the current fiscal year.

CSX Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Friday, May 29th were issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Friday, May 29th. CSX’s dividend payout ratio is 34.36%.

Insiders Place Their Bets

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

Institutional Trading of CSX

Several institutional investors have recently modified their holdings of CSX. GAMMA Investing LLC lifted its position in CSX by 10.0% in the second quarter. GAMMA Investing LLC now owns 76,675 shares of the transportation company’s stock valued at $3,644,000 after acquiring an additional 6,985 shares during the last quarter. Arlington Trust Co LLC grew its holdings in shares of CSX by 58.0% during the second quarter. Arlington Trust Co LLC now owns 681 shares of the transportation company’s stock worth $32,000 after purchasing an additional 250 shares during the last quarter. Somerset Trust Co purchased a new stake in CSX during the 2nd quarter valued at approximately $215,000. Rathbones Group PLC raised its stake in CSX by 5.2% during the 1st quarter. Rathbones Group PLC now owns 113,321 shares of the transportation company’s stock valued at $4,652,000 after acquiring an additional 5,624 shares during the last quarter. Finally, Strategic Investment Advisors MI acquired a new stake in CSX during the 1st quarter worth approximately $103,000. Hedge funds and other institutional investors own 73.57% of the company’s stock.

CSX Company Profile

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.