CSX Sees Unusually Large Options Volume (NASDAQ:CSX)

Key Points

• CSX saw unusually heavy options activity on Wednesday, with 81,533 call options traded—about 647% above its average daily call volume.
• The stock slipped to $46.80 in midday trading, close to its 52-week high of $47.55, while CSX continues to trade near the upper end of its recent range.
• CSX recently posted quarterly EPS of $0.43, beating estimates, and the company announced a quarterly dividend of $0.14 per share, implying a 1.2% annual yield.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the target of unusually large options trading on Wednesday. Stock investors purchased 81,533 call options on the company. This is an increase of 647% compared to the average daily volume of 10,919 call options.

CSX Price Performance

CSX traded down $0.48 during midday trading on Wednesday, reaching $46.80. 3,756,756 shares of the company's stock were exchanged, compared to its average volume of 13,267,808. CSX has a 1-year low of $31.80 and a 1-year high of $47.55. The stock has a market capitalization of $86.96 billion, a PE ratio of 28.71, a P/E/G ratio of 2.45 and a beta of 1.22. The company has a debt-to-equity ratio of 1.34, a current ratio of 0.97 and a quick ratio of 0.83. The business's 50-day moving average price is $44.43 and its 200 day moving average price is $40.33.

CSX (NASDAQ:CSX - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $0.43 EPS for the quarter, beating 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 business had revenue of $3.48 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period in the prior year, the business earned $0.34 earnings per share. The company's quarterly revenue was up 1.7% on a year-over-year basis. As a group, equities analysts anticipate that CSX will post 1.9 EPS for the current fiscal year.

CSX Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.56 annualized dividend and a yield of 1.2%. CSX's dividend payout ratio (DPR) is presently 34.36%.

Insider Buying and Selling

In other news, CFO Kevin S. Boone sold 136,708 shares of the firm'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 completion of the sale, the chief financial officer directly owned 208,622 shares of the company's stock, valued at $9,742,647.40. This trade represents a 39.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John J. Zillmer sold 10,000 shares of CSX stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $46.45, for a total value of $464,500.00. Following the completion of the sale, the director owned 353,714 shares in the company, valued at approximately $16,430,015.30. This trade represents a 2.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.30% of the company's stock.

Institutional Trading of CSX

Institutional investors and hedge funds have recently made changes to their positions in the stock. FNY Investment Advisers LLC increased its position in CSX by 437.3% during the 3rd quarter. FNY Investment Advisers LLC now owns 720 shares of the transportation company's stock worth $25,000 after purchasing an additional 586 shares in the last quarter. Wilkerson Advisory Group LLC lifted its holdings in CSX by 97.4% in the 1st 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 in the last quarter. WFA of San Diego LLC acquired a new stake in shares of CSX during the 2nd quarter worth about $28,000. CrossGen Wealth LLC purchased a new stake in shares of CSX during the fourth quarter worth about $54,000. Finally, Valley Wealth Managers Inc. grew its holdings in shares of CSX by 120.0% during the first quarter. Valley Wealth Managers Inc. now owns 1,650 shares of the transportation company's stock worth $68,000 after buying an additional 900 shares in the last quarter. 73.57% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

CSX has been the subject of a number of research analyst reports. Wells Fargo & Company increased their price target on shares of CSX from $40.00 to $50.00 and gave the company an "overweight" rating in a report on Thursday, April 23rd. Evercore upped their target price on shares of CSX from $44.00 to $46.00 in a research report on Monday, May 11th. Weiss Ratings reiterated a "hold (c)" rating on shares of CSX in a research report on Monday, June 1st. Benchmark boosted their price target on CSX from $46.00 to $48.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Finally, Sanford C. Bernstein raised their price objective on CSX from $36.00 to $39.00 and gave the company a "market perform" rating in a research note on Tuesday, March 31st. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, CSX has a consensus rating of "Moderate Buy" and an average target price of $46.42.

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.

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