First Citizens Bank & Trust Co. Acquires 32,074 Shares of CSX Corporation $CSX

Key Points

• First Citizens Bank & Trust increased its CSX stake by 65.5% in the third quarter, acquiring 32,074 shares and bringing its holdings to 81,029 shares valued at approximately $3.77 million. Institutional investors collectively own 73.57% of CSX.
• CSX reported quarterly earnings of $0.54 per share and revenue of $3.94 billion, exceeding analyst expectations, while revenue rose 10.1% year over year. The company also declared a quarterly dividend of $0.14 per share, equivalent to a 1.2% annual yield.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target near $51.06 versus a recent price of $48.28. Potential headwinds include labor costs, rail-network issues, leadership changes and a recent freight-car derailment.

First Citizens Bank & Trust Co. lifted its holdings in CSX Corporation (NASDAQ:CSX - Free Report) by 65.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 81,029 shares of the transportation company's stock after purchasing an additional 32,074 shares during the quarter. First Citizens Bank & Trust Co.'s holdings in CSX were worth $3,769,000 as of its most recent SEC filing.

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

CSX Stock Up 1.1%

Shares of CSX stock opened at $48.28 on Thursday. The stock has a market capitalization of $89.44 billion, a price-to-earnings ratio of 27.91, a P/E/G ratio of 2.25 and a beta of 1.21. CSX Corporation has a 52-week low of $33.63 and a 52-week high of $53.60. 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's 50 day moving average price is $48.85 and its 200-day moving average price is $47.24.

CSX (NASDAQ:CSX - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The transportation company reported $0.54 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.02. The firm had revenue of $3.94 billion for the quarter, compared to analyst estimates of $3.89 billion. CSX had a net margin of 22.21% and a return on equity of 24.98%. The company's revenue for the quarter was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.44 EPS. Equities research analysts forecast that CSX Corporation will post 1.99 EPS for the current year.

CSX Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Monday, November 30th. CSX's dividend payout ratio (DPR) is currently 32.37%.

Wall Street Analyst Weigh In

Several analysts recently commented on CSX shares. JPMorgan Chase & Co. reduced their target price on CSX from $58.00 to $57.00 and set an "overweight" rating on the stock in a report on Monday, October 5th. Truist Financial set a $46.00 target price on CSX in a report on Friday, July 10th. Raymond James Financial restated an "outperform" rating and issued a $56.00 target price on shares of CSX in a report on Monday, July 13th. Royal Bank Of Canada cut their price target on shares of CSX from $54.00 to $53.00 and set an "outperform" rating on the stock in a report on Thursday, September 24th. Finally, Wall Street Zen downgraded CSX from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, CSX has a consensus rating of "Moderate Buy" and an average price target of $51.06.

Key Headlines Impacting CSX

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

Insider Activity

In other news, SVP Michael Burns sold 13,000 shares of the company's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $52.68, for a total value 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 $3,141,993.24. This represents a 17.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Angela 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 value of $1,598,700.00. Following the transaction, the chief accounting officer owned 10,437 shares of the company's stock, valued at $556,187.73. This represents a 74.19% decrease in their position. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by company insiders.

CSX Profile

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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