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

Key Points

• CSX saw unusually heavy call-option activity on Monday, with 32,791 call options purchased—95% above its average volume of 16,818 contracts.
• Shares fell 2.7% to $51.80 despite strong quarterly results: CSX beat earnings estimates, reporting $0.54 EPS and $3.94 billion in revenue, up 10.1% year over year.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $51.17; the company also declared a quarterly dividend of $0.14 per share.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the target of some unusual options trading activity on Monday. Stock investors bought 32,791 call options on the company. This represents an increase of 95% compared to the average volume of 16,818 call options.

CSX Trading Down 2.7%

NASDAQ:CSX traded down $1.43 during midday trading on Monday, reaching $51.80. 17,852,623 shares of the stock traded hands, compared to its average volume of 13,307,937. The stock has a market capitalization of $95.96 billion, a P/E ratio of 29.94, a PEG ratio of 2.48 and a beta of 1.21. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.72 and a current ratio of 0.82. The company has a fifty day moving average of $47.70 and a 200 day moving average of $43.21. CSX has a 12 month low of $31.80 and a 12 month high of $53.60.

CSX (NASDAQ:CSX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The transportation company reported $0.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.52 by $0.02. CSX had a net margin of 22.21% and a return on equity of 24.98%. The business had revenue of $3.94 billion for the quarter, compared to analyst estimates of $3.89 billion. During the same quarter last year, the firm earned $0.44 EPS. The company's revenue was up 10.1% on a year-over-year basis. On average, research analysts predict that CSX will post 1.96 EPS for the current year.

CSX Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be issued a dividend of $0.14 per share. 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 currently 32.37%.

Insider Activity at CSX

In other CSX 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 transaction of $6,384,263.60. Following the transaction, the chief financial officer directly owned 208,622 shares of the company's stock, valued at approximately $9,742,647.40. This trade represents a 39.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director John J. Zillmer sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $46.45, for a total transaction of $464,500.00. Following the completion of the sale, the director owned 353,714 shares of the company's stock, valued at approximately $16,430,015.30. The trade was 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 Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Arlington Trust Co LLC raised its position in 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 purchasing an additional 250 shares during the last quarter. Syon Capital LLC grew its position in shares of 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 during the last quarter. Root Financial Partners LLC increased its stake in shares of 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 buying an additional 323 shares during the period. Walled Lake Planning & Wealth Management LLC increased its stake in shares of 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 buying an additional 346 shares during the period. Finally, Sumitomo Life Insurance Co. raised its holdings in shares of CSX by 0.9% during 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. Hedge funds and other institutional investors own 73.57% of the company's stock.

Analysts Set New Price Targets

Several research firms have issued reports on CSX. New Street Research set a $49.00 price target on shares of CSX in a research report on Thursday, April 23rd. Robert W. Baird lifted their price objective on CSX from $49.00 to $53.00 and gave the stock an "outperform" rating in a report on Tuesday, July 7th. Sanford C. Bernstein boosted their target price on CSX from $36.00 to $39.00 and gave the company a "market perform" rating in a research note on Tuesday, March 31st. Citigroup boosted their target price on CSX from $53.00 to $54.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Vertical Research cut CSX from a "buy" rating to a "hold" rating and set a $44.00 target price for the company. in a report on Thursday, April 23rd. Seventeen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, CSX presently has an average rating of "Moderate Buy" and a consensus target price of $51.17.

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.

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