Bank of America Corp DE Invests $1.60 Billion in CSX Corporation $CSX

Key Points

• Bank of America acquired 33.6 million CSX shares worth approximately $1.60 billion in the second quarter, giving it a 1.82% stake. Institutional investors collectively own 73.57% of the railroad company.
• CSX reported strong quarterly results, with earnings of $0.54 per share and revenue of $3.94 billion, exceeding estimates and marking 10.1% year-over-year revenue growth.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $51.31; CSX also declared a $0.14 quarterly dividend, yielding about 1.1% annually.

Bank of America Corp DE bought a new position in shares of CSX Corporation (NASDAQ:CSX - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm bought 33,641,111 shares of the transportation company's stock, valued at approximately $1,598,962,000. Bank of America Corp DE owned approximately 1.82% of CSX as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in shares of CSX during the second quarter worth approximately $7,655,277,000. XXEC Inc. acquired a new position in CSX in the second quarter valued at approximately $765,595,000. Bank of New York Mellon Corp bought a new stake in shares of CSX during the 2nd quarter valued at $950,325,000. Legal & General Group Plc acquired a new position in shares of CSX in the 2nd quarter valued at $747,001,000. Finally, Deutsche Bank AG acquired a new position in shares of CSX in the 2nd quarter valued at $685,418,000. 73.57% of the stock is owned by institutional investors.

Insider Activity

In related news, SVP Michael S. Burns sold 13,000 shares of the stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $52.68, for a total transaction of $684,840.00. Following the completion of the sale, the senior vice president directly owned 59,643 shares of the company's stock, valued at approximately $3,141,993.24. This represents a 17.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Angela C. Williams sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $53.29, for a total transaction of $1,598,700.00. Following the sale, the chief accounting officer owned 10,437 shares in the company, valued at $556,187.73. This trade represents a 74.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Citigroup lifted their price objective on CSX from $53.00 to $54.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Citizens Jmp started coverage on CSX in a research note on Wednesday, July 15th. They issued a "market perform" rating on the stock. JPMorgan Chase & Co. raised their target price on CSX from $56.00 to $58.00 and gave the stock an "overweight" rating 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, Stephens began coverage on CSX in a research note on Wednesday, July 8th. They issued an "overweight" rating and a $57.00 price target for the company. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $51.31.

CSX Price Performance

Shares of CSX stock opened at $48.91 on Tuesday. The company has a quick ratio of 0.72, a current ratio of 0.82 and a debt-to-equity ratio of 1.22. CSX Corporation has a 12-month low of $32.18 and a 12-month high of $53.60. The firm has a fifty day moving average of $50.23 and a 200-day moving average of $46.20. The firm has a market capitalization of $90.60 billion, a price-to-earnings ratio of 28.27, a price-to-earnings-growth ratio of 2.30 and a beta of 1.21.

CSX (NASDAQ:CSX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The transportation company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.52 by $0.02. CSX had a return on equity of 24.98% and a net margin of 22.21%.The business had revenue of $3.94 billion for the quarter, compared to the consensus estimate of $3.89 billion. During the same quarter last year, the business posted $0.44 EPS. The firm's revenue was up 10.1% compared to the same quarter last year. On average, equities research analysts forecast that CSX Corporation will post 2 earnings per share for the current year.

CSX Dividend Announcement

The firm also recently disclosed 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 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, August 31st. CSX's payout ratio is 32.37%.

CSX Company Profile

CSX Corporation NASDAQ: CSX is a transportation company that operates one of the largest rail networks in the eastern United States. Through its CSX Transportation subsidiary, the company provides rail freight transportation and logistics services for manufacturers, distributors, utilities, agricultural businesses and other commercial customers.

CSX transports a broad range of products, including chemicals, agricultural and food products, minerals, forest products, metals, automobiles and consumer goods.

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