CSX Corporation $CSX Shares Sold by Perpetual Ltd

Key Points

• Perpetual Ltd cut its CSX stake by 99.6% in the third quarter, selling 1.95 million shares and retaining just 8,634 shares worth approximately $402,000. Institutional investors overall still own 73.57% of CSX.
• CSX exceeded quarterly expectations, reporting $0.54 in EPS and $3.94 billion in revenue, with revenue up 10.1% year over year. The company also declared a quarterly dividend of $0.14 per share, representing a 1.2% annualized yield.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target near $51.06 versus the stock’s reported $48.28 price. Potential risks include labor costs, network issues and a recent freight-car derailment.

Perpetual Ltd decreased its holdings in shares of CSX Corporation (NASDAQ:CSX - Free Report) by 99.6% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,634 shares of the transportation company's stock after selling 1,949,121 shares during the quarter. Perpetual Ltd's holdings in CSX were worth $402,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in CSX. BlackRock Inc. acquired a new stake in shares of CSX during the 2nd quarter worth about $7,655,277,000. Bank of America Corp DE acquired a new position in CSX in the 2nd quarter valued at about $1,598,962,000. Bank of New York Mellon Corp acquired a new position in CSX in the 2nd quarter valued at about $950,325,000. XXEC Inc. acquired a new position in CSX in the 2nd quarter valued at about $765,595,000. Finally, Legal & General Group Plc acquired a new position in CSX in the 2nd quarter valued at about $747,001,000. Institutional investors and hedge funds own 73.57% of the company's stock.

CSX Price Performance

Shares of NASDAQ CSX opened at $48.28 on Thursday. The stock has a market capitalization of $89.44 billion, a PE ratio of 27.91, a P/E/G ratio of 2.25 and a beta of 1.21. 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 business has a fifty day moving average price of $48.85 and a two-hundred day moving average price of $47.24. CSX Corporation has a fifty-two week low of $33.63 and a fifty-two week high of $53.60.

CSX (NASDAQ:CSX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The transportation company reported $0.54 earnings per share 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 company had revenue of $3.94 billion during the quarter, compared to the consensus estimate of $3.89 billion. During the same quarter in the prior year, the firm posted $0.44 EPS. The firm's quarterly revenue was up 10.1% on a year-over-year basis. As a group, equities analysts predict that CSX Corporation will post 1.99 earnings per share for the current fiscal year.

CSX Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, November 30th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.2%. CSX's payout ratio is 32.37%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CSX shares. Wall Street Zen cut CSX from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Barclays reiterated an "overweight" rating and set a $60.00 target price (up from $55.00) on shares of CSX in a research note on Thursday, July 23rd. Citigroup reissued a "cautious" rating on shares of CSX in a report on Wednesday, October 7th. Bank of America dropped their price target on CSX from $56.00 to $55.00 and set a "buy" rating for the company in a report on Friday, September 18th. Finally, Evercore set a $51.00 price target on CSX in a research note on Thursday, July 23rd. Eighteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $51.06.

Insider Activity

In other CSX news, SVP Michael S. Burns sold 13,000 shares of the business's stock in a transaction dated 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 transaction, the senior vice president owned 59,643 shares of the company's stock, valued at approximately $3,141,993.24. The trade was a 17.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Angela C. Williams sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $53.29, for a total transaction of $1,598,700.00. Following the completion of the sale, the chief accounting officer owned 10,437 shares in the company, valued at $556,187.73. This represents a 74.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.30% of the company's stock.

CSX News Roundup

Here are the key news stories impacting CSX this week:

• Positive Sentiment: Analysts expect CSX’s upcoming third-quarter results to benefit from stronger merchandise, intermodal and coal revenue. The company is also expected to post year-over-year earnings growth, supported by solid freight demand and pricing. CSX Gears Up to Report Q3 Earnings: What's in the Cards?
• Positive Sentiment: Analyst price targets remain above the stock’s recent trading level. A group of 26 analysts set an average target of $51.09, while TD Cowen established a $54 target, indicating potential upside if CSX delivers on its earnings and operating outlook. 26 analysts set a USD 51.09 target for CSX stock
• Neutral Sentiment: Chief Operating Officer Mike Cory is retiring, beginning a leadership transition for CSX’s operations organization. The change could create near-term uncertainty, although an orderly transition may limit disruption. CSX announces retirement of COO Cory
• Neutral Sentiment: Options-market activity has drawn investor attention ahead of the earnings release, suggesting expectations for a potentially larger move in the stock but not establishing a clear directional signal. Is the Options Market Predicting a Spike in CSX Stock?
• Negative Sentiment: Labor costs and rail-network issues could pressure margins and service performance in the quarter. Another earnings preview cautions that CSX may lack the catalysts typically associated with a likely earnings beat, raising the risk of a muted reaction if results or guidance disappoint. CSX Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: A CSX freight car derailed near Montgomery College in Rockville, Maryland, temporarily halting rail traffic and causing expected MARC delays. The incident adds potential reputational, disruption and cleanup risks, although the reported information does not indicate the financial impact. CSX train car derails near Montgomery College campus in Rockville

About CSX

CSX Corporation NASDAQ: CSX is a transportation company that provides rail-based freight services through its principal subsidiary, CSX Transportation. The company moves a broad range of products, including agricultural and food products, chemicals, minerals, forest products, metals, automotive shipments, and consumer goods.

CSX also provides intermodal transportation, connecting rail shipments with trucks, ports, and distribution facilities. Its network serves the eastern United States and reaches parts of Canada, linking major industrial regions, population centers, manufacturing locations, and Atlantic and Gulf Coast ports.

CSX traces its history to the 1980 merger of Chessie System and Seaboard Coast Line Industries.

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