Morgan Stanley Forecasts Strong Price Appreciation for CSX (NASDAQ:CSX) Stock

Key Points

• Morgan Stanley raised its price target on CSX from $30 to $32, but kept an underweight rating, implying downside from the stock’s recent price.
• CSX shares were trading near their 52-week high at $49.16, and the stock has gained attention from analysts overall, with a consensus rating of Moderate Buy and an average target price of $47.26.
• The company recently posted better-than-expected earnings of $0.43 per share, while revenue rose 1.7% year over year; however, insider selling by the CFO and a director was also disclosed.

CSX (NASDAQ:CSX - Get Free Report) had its target price hoisted by Morgan Stanley from $30.00 to $32.00 in a report issued on Monday,Benzinga reports. The firm presently has an "underweight" rating on the transportation company's stock. Morgan Stanley's target price would indicate a potential downside of 34.90% from the company's previous close.

Several other equities analysts have also issued reports on CSX. Vertical Research lowered shares of 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. New Street Research set a $49.00 price target on CSX in a research note on Thursday, April 23rd. Royal Bank Of Canada lifted their price objective on CSX from $47.00 to $51.00 and gave the company an "outperform" rating in a research note on Wednesday, June 24th. Benchmark boosted their target price on CSX from $46.00 to $48.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Finally, Evercore set a $47.00 target price on CSX in a research note on Thursday, June 25th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $47.26.

CSX Stock Performance

Shares of CSX stock opened at $49.16 on Monday. The company's fifty day moving average price is $46.23 and its 200-day moving average price is $41.77. The stock has a market cap of $91.34 billion, a PE ratio of 30.08, a price-to-earnings-growth ratio of 2.44 and a beta of 1.21. The company has a current ratio of 0.97, a quick ratio of 0.83 and a debt-to-equity ratio of 1.34. CSX has a 12 month low of $31.80 and a 12 month high of $49.21.

CSX (NASDAQ:CSX - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $0.43 earnings per share (EPS) for the quarter, topping 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 company had revenue of $3.48 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the business earned $0.34 EPS. CSX's quarterly revenue was up 1.7% compared to the same quarter last year. On average, equities analysts expect that CSX will post 1.9 EPS for the current fiscal year.

Insider Transactions at CSX

In other news, Director John J. Zillmer sold 10,000 shares of CSX stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $46.45, for a total value of $464,500.00. Following the completion of the sale, the director directly owned 353,714 shares in the company, valued at $16,430,015.30. The trade was a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kevin S. Boone sold 136,708 shares of the business's 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 $9,742,647.40. The trade was a 39.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On CSX

A number of large investors have recently added to or reduced their stakes in the stock. Cohen & Steers Inc. lifted its holdings in shares of CSX by 1.2% during the 4th quarter. Cohen & Steers Inc. now owns 8,282,107 shares of the transportation company's stock valued at $300,226,000 after buying an additional 98,977 shares during the period. Cbre Investment Management Listed Real Assets LLC increased its position in CSX by 81.9% during the third quarter. Cbre Investment Management Listed Real Assets LLC now owns 944,946 shares of the transportation company's stock valued at $33,555,000 after acquiring an additional 425,395 shares during the last quarter. Captrust Financial Advisors lifted its holdings in CSX by 4.4% in the fourth quarter. Captrust Financial Advisors now owns 423,312 shares of the transportation company's stock valued at $15,345,000 after acquiring an additional 18,025 shares during the period. Miller Howard Investments Inc. NY lifted its holdings in CSX by 6.8% in the first quarter. Miller Howard Investments Inc. NY now owns 238,817 shares of the transportation company's stock valued at $9,803,000 after acquiring an additional 15,310 shares during the period. Finally, Rathbones Group PLC boosted its position in CSX by 20.6% in the third quarter. Rathbones Group PLC now owns 207,454 shares of the transportation company's stock worth $7,367,000 after purchasing an additional 35,403 shares during the last quarter. Institutional investors own 73.57% of the company's stock.

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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