Investors Purchase High Volume of Call Options on CSX (NASDAQ:CSX)

Key Points

• Unusual options activity: Investors bought 21,897 CSX call options on Friday, up 141% from the typical volume of 9,096, signaling a notable rise in bullish betting on the stock.
• Solid fundamentals and dividend: CSX recently reported quarterly EPS of $0.43, topping estimates, and announced a $0.14 quarterly dividend payable June 15, implying a 1.2% annual yield.
• Analysts remain positive: Several firms raised price targets, and the stock now carries a consensus Moderate Buy rating with an average target price of $45.42.

CSX Corporation (NASDAQ:CSX - Get Free Report) saw some unusual options trading activity on Friday. Stock investors purchased 21,897 call options on the company. This is an increase of 141% compared to the typical volume of 9,096 call options.

CSX Stock Performance

Shares of CSX traded down $0.25 during mid-day trading on Friday, hitting $45.68. 5,443,047 shares of the company traded hands, compared to its average volume of 13,424,040. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.83 and a current ratio of 0.97. The stock has a 50-day moving average price of $42.14 and a two-hundred day moving average price of $38.93. CSX has a 1 year low of $30.17 and a 1 year high of $46.55. The stock has a market cap of $84.87 billion, a price-to-earnings ratio of 28.06, a P/E/G ratio of 2.31 and a beta of 1.24.

CSX (NASDAQ:CSX - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The transportation company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.04. CSX had a net margin of 21.55% and a return on equity of 24.47%. The firm had revenue of $3.48 billion during the quarter, compared to analysts' expectations of $3.50 billion. During the same period in the previous year, the company earned $0.34 earnings per share. The firm's quarterly revenue was up 1.7% on a year-over-year basis. Equities analysts anticipate that CSX will post 1.89 earnings per share for the current year.

CSX Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, May 29th. CSX's payout ratio is 34.36%.

Insider Transactions at CSX

In related news, CAO Diana B. Sorfleet sold 90,000 shares of CSX stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $41.56, for a total transaction of $3,740,400.00. Following the completion of the transaction, the chief accounting officer directly owned 165,613 shares of the company's stock, valued at $6,882,876.28. This trade represents a 35.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Stephen F. Angel bought 25,000 shares of the firm's stock in a transaction on Friday, March 6th. The stock was purchased at an average cost of $40.27 per share, with a total value of $1,006,750.00. Following the completion of the acquisition, the chief executive officer directly owned 146,540 shares of the company's stock, valued at approximately $5,901,165.80. The trade was a 20.57% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.30% of the company's stock.

Institutional Trading of CSX

Several large investors have recently added to or reduced their stakes in the business. Wilkerson Advisory Group LLC grew its position in CSX by 97.4% during the first quarter. Wilkerson Advisory Group LLC now owns 829 shares of the transportation company's stock valued at $34,000 after buying an additional 409 shares during the period. Resolute Wealth Strategies LLC grew its position in CSX by 15.0% during the first quarter. Resolute Wealth Strategies LLC now owns 7,425 shares of the transportation company's stock valued at $305,000 after buying an additional 970 shares during the period. S&CO Inc. bought a new stake in CSX during the first quarter valued at approximately $221,000. Valley Wealth Managers Inc. grew its position in CSX by 120.0% during the first quarter. Valley Wealth Managers Inc. now owns 1,650 shares of the transportation company's stock valued at $68,000 after buying an additional 900 shares during the period. Finally, Stronghold Wealth Management L.L.C. bought a new stake in CSX during the first quarter valued at approximately $204,000. 73.57% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have issued reports on CSX shares. Barclays reaffirmed an "overweight" rating and issued a $47.00 target price (up from $40.00) on shares of CSX in a report on Thursday, April 23rd. Sanford C. Bernstein lifted their target price on shares of CSX from $36.00 to $39.00 and gave the stock a "market perform" rating in a report on Tuesday, March 31st. Jefferies Financial Group lifted their target price on shares of CSX from $50.00 to $52.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Bank of America lifted their target price on shares of CSX from $46.00 to $49.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. lifted their target price on shares of CSX from $42.00 to $48.00 and gave the stock an "overweight" rating in a report on Thursday, April 23rd. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $45.42.

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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