CSX Target of Unusually High Options Trading (NASDAQ:CSX)

Key Points

• CSX saw unusually high options activity, with investors purchasing 33,081 call options—about 88% above the average volume.
• Company insiders sold 189,708 shares worth approximately $9.1 million over the past three months, while institutional investors own 73.57% of CSX.
• CSX reported quarterly EPS of $0.54, beating estimates, while revenue rose 10.1% year over year to $3.94 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $51.31, and the company declared a quarterly dividend of $0.14 per share.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Investors purchased 33,081 call options on the company. This is an increase of approximately 88% compared to the average volume of 17,604 call options.

Insider Activity at CSX

In other news, CFO Kevin S. Boone sold 136,708 shares of CSX stock in a transaction that occurred on Wednesday, June 3rd. The shares were 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 in the company, valued at $9,742,647.40. The trade was a 39.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Michael S. Burns sold 13,000 shares of the business's stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $52.68, for a total transaction of $684,840.00. Following the transaction, the senior vice president directly owned 59,643 shares of the company's stock, valued at $3,141,993.24. The trade was a 17.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 189,708 shares of company stock valued at $9,132,304. Insiders own 0.30% of the company's stock.

Institutional Trading of CSX

Institutional investors and hedge funds have recently modified their holdings of the company. Arlington Trust Co LLC lifted its stake in shares of CSX by 58.0% during the 2nd quarter. Arlington Trust Co LLC now owns 681 shares of the transportation company's stock valued at $32,000 after buying an additional 250 shares in the last quarter. Syon Capital LLC increased its stake in CSX by 1.0% in the 4th quarter. Syon Capital LLC now owns 28,316 shares of the transportation company's stock worth $1,026,000 after buying an additional 287 shares in the last quarter. Root Financial Partners LLC raised its holdings in CSX by 7.3% during the fourth quarter. Root Financial Partners LLC now owns 4,757 shares of the transportation company's stock valued at $172,000 after acquiring an additional 323 shares during the period. Walled Lake Planning & Wealth Management LLC raised its holdings in CSX by 2.7% during the fourth quarter. Walled Lake Planning & Wealth Management LLC now owns 13,235 shares of the transportation company's stock valued at $480,000 after acquiring an additional 346 shares during the period. Finally, Sumitomo Life Insurance Co. lifted its position in shares of CSX by 0.9% in the fourth quarter. Sumitomo Life Insurance Co. now owns 39,996 shares of the transportation company's stock valued at $1,450,000 after acquiring an additional 347 shares in the last quarter. 73.57% of the stock is currently owned by institutional investors.

CSX Stock Performance

Shares of CSX stock traded down $0.25 during trading hours on Tuesday, reaching $50.33. 4,591,906 shares of the company traded hands, compared to its average volume of 13,057,986. CSX has a 12-month low of $31.80 and a 12-month high of $53.60. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.82 and a quick ratio of 0.72. The company has a market cap of $93.23 billion, a P/E ratio of 29.09, a P/E/G ratio of 2.29 and a beta of 1.21. The firm has a 50-day moving average price of $49.08 and a 200 day moving average price of $44.83.

CSX (NASDAQ:CSX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The transportation company reported $0.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.02. CSX had a return on equity of 24.98% and a net margin of 22.21%.The company had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.89 billion. During the same period in the previous year, the company posted $0.44 EPS. The firm's revenue was up 10.1% on a year-over-year basis. As a group, sell-side analysts predict that CSX will post 2 earnings per share for the current fiscal year.

CSX Announces Dividend

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

Analysts Set New Price Targets

CSX has been the subject of a number of recent research reports. Citizens Jmp started coverage on CSX in a research note on Wednesday, July 15th. They set a "market perform" rating for the company. The Goldman Sachs Group reiterated a "neutral" rating and issued a $41.00 price objective (up from $37.00) on shares of CSX in a research note on Thursday, April 23rd. Evercore set a $51.00 price objective on shares of CSX in a report on Thursday, July 23rd. Royal Bank Of Canada restated an "outperform" rating and set a $54.00 target price (up from $51.00) on shares of CSX in a research report on Thursday, July 23rd. Finally, Barclays reaffirmed an "overweight" rating and set a $60.00 target price (up from $55.00) on shares of CSX in a report on Thursday, July 23rd. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $51.31.

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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