CSX (NASDAQ:CSX) Shares Gap Up on Strong Earnings

Key Points

• CSX Corporation reported quarterly earnings of $0.44 per share, surpassing analysts' expectations of $0.42, while revenue was slightly below projections at $3.59 billion.
• The company announced a quarterly dividend of $0.13 per share, set to be paid on December 15th, resulting in an annual yield of 1.4%.
• Analysts have varying target prices for CSX shares, with Goldman Sachs setting a target of $37.00 and Wolfe Research increasing theirs to $43.00, while the consensus rating remains a "Moderate Buy."

Shares of CSX Corporation (NASDAQ:CSX - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.99, but opened at $36.88. CSX shares last traded at $36.52, with a volume of 5,518,836 shares traded.

The transportation company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The company had revenue of $3.59 billion during the quarter, compared to analysts' expectations of $3.60 billion. CSX had a return on equity of 25.48% and a net margin of 21.92%.The firm's revenue for the quarter was down .9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.45 earnings per share.

CSX Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Friday, November 28th will be given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, November 28th. CSX's dividend payout ratio (DPR) is presently 32.10%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CSX. The Goldman Sachs Group upped their target price on shares of CSX from $35.00 to $37.00 and gave the company a "neutral" rating in a report on Friday. Raymond James Financial boosted their price target on CSX from $39.00 to $40.00 and gave the company an "outperform" rating in a research report on Friday. Wolfe Research increased their price objective on CSX from $40.00 to $43.00 and gave the stock an "outperform" rating in a research report on Tuesday, October 7th. Bank of America lowered their target price on CSX from $42.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, September 24th. Finally, BMO Capital Markets cut CSX from an "outperform" rating to a "market perform" rating and set a $38.00 price target for the company. in a research note on Monday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, CSX has a consensus rating of "Moderate Buy" and an average target price of $38.48.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Bank of New York Mellon Corp grew its stake in shares of CSX by 21.6% during the 1st quarter. Bank of New York Mellon Corp now owns 28,383,830 shares of the transportation company's stock worth $835,336,000 after purchasing an additional 5,033,743 shares during the period. Ameriprise Financial Inc. boosted its holdings in CSX by 12.5% during the first quarter. Ameriprise Financial Inc. now owns 23,456,085 shares of the transportation company's stock worth $690,359,000 after buying an additional 2,599,518 shares in the last quarter. Northern Trust Corp boosted its holdings in CSX by 4.6% during the first quarter. Northern Trust Corp now owns 22,067,356 shares of the transportation company's stock worth $649,442,000 after buying an additional 969,567 shares in the last quarter. Dimensional Fund Advisors LP grew its position in CSX by 11.0% during the first quarter. Dimensional Fund Advisors LP now owns 18,742,431 shares of the transportation company's stock worth $551,540,000 after buying an additional 1,856,322 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in CSX by 19.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 15,312,107 shares of the transportation company's stock valued at $450,635,000 after buying an additional 2,454,895 shares in the last quarter. Hedge funds and other institutional investors own 73.57% of the company's stock.

CSX Stock Performance

The stock's 50-day moving average price is $34.32 and its 200-day moving average price is $32.37. The company has a market capitalization of $68.57 billion, a price-to-earnings ratio of 22.71, a P/E/G ratio of 2.83 and a beta of 1.29. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.63 and a current ratio of 0.77.

CSX Company Profile

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.

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