CSX (NASDAQ:CSX) Stock Price Up 6.1% on Earnings Beat

Key Points

• CSX shares rose about 6% after the railroad reported third-quarter EPS of $0.57, beating the $0.53 consensus estimate, while revenue reached $4.02 billion versus expectations of $3.96 billion. Revenue increased 12% year over year.
• Operating income climbed 44% to $1.57 billion and freight volume rose 5%, including a 7% increase in intermodal volume; the company also reduced nonfuel costs by 3%. CSX declared a quarterly dividend of $0.14, implying a 1.1% annual yield.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $51.57 price target, though Morgan Stanley maintains a Sell rating with a $32 target. Recent management job cuts and insider selling add cautionary signals.

Shares of CSX Corporation (NASDAQ:CSX - Get Free Report) rose 6.1% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $51.51 and last traded at $51.3290. 2,684,064 shares were traded during mid-day trading, a decline of 78% from the average session volume of 12,309,460 shares. The stock had previously closed at $48.40.

The transportation company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.53 by $0.04. The business had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $3.96 billion. CSX had a return on equity of 24.98% and a net margin of 22.21%. The company's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.44 EPS.

CSX Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders 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 dividend yield of 1.1%. The ex-dividend date is Monday, November 30th. CSX's dividend payout ratio (DPR) is currently 32.37%.

Key Stories Impacting CSX

Here are the key news stories impacting CSX this week:

• Positive Sentiment: CSX reported third-quarter revenue of $4.02 billion, up 12% year over year and above the roughly $3.96 billion consensus estimate. Earnings per share rose to $0.57 from $0.44, beating estimates near $0.52-$0.53. CSX Corp. Announces Third Quarter 2026 Results
• Positive Sentiment: Operating income increased 44% to $1.57 billion, while the operating margin expanded to 39.1%. Net earnings reached $1.05 billion, and adjusted year-over-year comparisons still showed solid growth in operating income, net earnings and EPS. CSX Q3 Revenue Hits Record $4.02 Billion
• Positive Sentiment: Total freight volume rose 5%, with intermodal volume up 7% to a record level. CSX also reduced nonfuel costs by 3%, indicating operating leverage and improving efficiency. CSX: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Raymond James lowered its CSX price target from $56 to $53 while maintaining a more favorable valuation outlook than the current Morgan Stanley target.
• Negative Sentiment: Morgan Stanley analyst Ravi Shanker maintained a Sell rating and a $32 price target, citing CSX’s valuation and long-term risks. That target is well below the stock’s recent trading range and could weigh on investor sentiment. CSX Sell Rating Maintained
• Negative Sentiment: CSX eliminated more than 100 management positions, potentially improving costs but also signaling restructuring and pressure to sustain efficiency gains. Reported recent insider activity was entirely selling, another modest sentiment headwind.

Wall Street Analyst Weigh In

CSX has been the subject of several recent research reports. Raymond James Financial reiterated an "outperform" rating and set a $53.00 price target on shares of CSX in a report on Thursday, October 15th. JPMorgan Chase & Co. raised their price objective on CSX from $57.00 to $58.00 and gave the company an "overweight" rating in a research note on Thursday. Argus set a $56.00 price objective on shares of CSX in a report on Friday, July 31st. Weiss Ratings raised shares of CSX from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Finally, Citigroup reiterated a "cautious" rating on shares of CSX in a research note on Wednesday, October 7th. Eighteen research 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. According to data from MarketBeat.com, CSX currently has an average rating of "Moderate Buy" and a consensus price target of $51.57.

Insider Buying and Selling

In other news, SVP Michael S. Burns sold 13,000 shares of the company's stock in a transaction that occurred on 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 directly 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 C. Williams sold 30,000 shares of the 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 sale, the chief accounting officer directly owned 10,437 shares of the company's stock, valued at $556,187.73. The trade was a 74.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CSX. Washington Trust Advisors Inc. increased its holdings in CSX by 7.2% during the second quarter. Washington Trust Advisors Inc. now owns 3,142 shares of the transportation company's stock worth $149,000 after buying an additional 211 shares during the last quarter. PFG Private Wealth Management LLC boosted its stake in CSX by 2.7% in the third quarter. PFG Private Wealth Management LLC now owns 8,309 shares of the transportation company's stock valued at $386,000 after acquiring an additional 217 shares during the last quarter. Kintegral Advisory LLC boosted its stake in CSX by 0.6% in the third quarter. Kintegral Advisory LLC now owns 40,384 shares of the transportation company's stock valued at $1,878,000 after acquiring an additional 228 shares during the last quarter. Cyndeo Wealth Partners LLC boosted its stake in CSX by 1.9% in the third quarter. Cyndeo Wealth Partners LLC now owns 13,194 shares of the transportation company's stock valued at $614,000 after acquiring an additional 244 shares during the last quarter. Finally, Arlington Trust Co LLC grew its position in shares of CSX by 58.0% during the 2nd quarter. Arlington Trust Co LLC now owns 681 shares of the transportation company's stock valued at $32,000 after acquiring an additional 250 shares during the period. Hedge funds and other institutional investors own 73.57% of the company's stock.

CSX Stock Up 6.5%

The stock's 50-day moving average price is $48.66 and its two-hundred day moving average price is $47.51. The stock has a market capitalization of $95.53 billion, a P/E ratio of 29.77, a P/E/G ratio of 2.27 and a beta of 1.21. The company has a current ratio of 0.82, a quick ratio of 0.72 and a debt-to-equity ratio of 1.22.

CSX Company Profile

CSX Corporation is a transportation company whose primary business is freight railroading through its CSX Transportation subsidiary. The company operates an extensive rail network across the eastern United States, serving major industrial centers, population hubs, ports and distribution markets.

CSX transports a broad range of products, including chemicals, agricultural and food products, forest products, minerals, metals, automotive goods and other manufactured merchandise. Its services also include intermodal transportation, which combines rail service with trucks and containers, as well as the movement of coal and other bulk commodities.

The company traces its roots to the formation of CSX Corporation in 1980 through the merger of Chessie System and Seaboard Coast Line Industries.

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