Stephens Initiates Coverage on CSX (NASDAQ:CSX)

Key Points

• Stephens initiated coverage on CSX with an overweight rating and a $57 price target, implying about 17.6% upside from the prior close.
• Other Wall Street firms have also turned constructive on the stock, with recent target increases from RBC, Wells Fargo, and Susquehanna. Overall, CSX now carries a Moderate Buy consensus and a $47.98 average price target.
• CSX shares were trading near their 52-week high after a strong run, and the company recently beat quarterly EPS estimates with $0.43 per share versus $0.39 expected.

Stock analysts at Stephens began coverage on shares of CSX (NASDAQ:CSX - Get Free Report) in a research report issued on Wednesday. The brokerage set an "overweight" rating and a $57.00 price target on the transportation company's stock. Stephens' target price suggests a potential upside of 17.61% from the company's previous close.

Several other brokerages have also recently issued reports on CSX. Royal Bank Of Canada lifted their target price on CSX from $47.00 to $51.00 and gave the company an "outperform" rating in a research report on Wednesday, June 24th. Wells Fargo & Company lifted their price objective on shares of CSX from $50.00 to $54.00 and gave the stock an "overweight" rating in a report on Wednesday. The Goldman Sachs Group reiterated a "neutral" rating and issued a $41.00 target price (up from $37.00) on shares of CSX in a research note on Thursday, April 23rd. Vertical Research lowered shares of CSX from a "buy" rating to a "hold" rating and set a $44.00 price target on the stock. in a research report on Thursday, April 23rd. Finally, Susquehanna upped their price objective on shares of CSX from $44.00 to $50.00 and gave the stock a "neutral" rating in a research report on Friday, June 5th. Sixteen 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 stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $47.98.

CSX Trading Down 0.1%

Shares of CSX stock traded down $0.04 during trading hours on Wednesday, hitting $48.47. 597,907 shares of the company were exchanged, compared to its average volume of 13,151,039. The company has a 50 day simple moving average of $46.34 and a two-hundred day simple moving average of $41.94. The firm has a market cap of $90.05 billion, a P/E ratio of 29.76, a P/E/G ratio of 2.44 and a beta of 1.21. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.83 and a current ratio of 0.97. CSX has a fifty-two week low of $31.80 and a fifty-two week high of $49.29.

CSX (NASDAQ:CSX - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The transportation company reported $0.43 EPS for the quarter, beating analysts' consensus estimates of $0.39 by $0.04. CSX had a return on equity of 24.47% and a net margin of 21.55%.The firm had revenue of $3.48 billion during the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter last year, the firm posted $0.34 earnings per share. The company's revenue for the quarter was up 1.7% compared to the same quarter last year. Equities analysts anticipate that CSX will post 1.9 EPS for the current year.

Insider Transactions at CSX

In other news, Director John J. Zillmer sold 10,000 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $46.45, for a total transaction of $464,500.00. Following the completion of the transaction, the director owned 353,714 shares of the company's stock, valued at approximately $16,430,015.30. The trade was a 2.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Kevin S. Boone sold 136,708 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $46.70, for a total value of $6,384,263.60. Following the completion of the transaction, the chief financial officer directly owned 208,622 shares in the company, valued at approximately $9,742,647.40. This represents a 39.59% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On CSX

Several hedge funds and other institutional investors have recently modified their holdings of CSX. FNY Investment Advisers LLC lifted its stake in CSX by 437.3% in the third quarter. FNY Investment Advisers LLC now owns 720 shares of the transportation company's stock worth $25,000 after acquiring an additional 586 shares during the period. WFA of San Diego LLC bought a new position in CSX in the 2nd quarter worth about $28,000. Arlington Trust Co LLC grew its holdings in shares of CSX by 58.0% during the second quarter. Arlington Trust Co LLC now owns 681 shares of the transportation company's stock valued at $32,000 after buying an additional 250 shares during the last quarter. Wilkerson Advisory Group LLC lifted its stake in CSX by 97.4% during the 1st quarter. Wilkerson Advisory Group LLC now owns 829 shares of the transportation company's stock valued at $34,000 after acquiring an additional 409 shares during the period. Finally, CrossGen Wealth LLC purchased a new stake in shares of CSX during the 4th quarter valued at about $54,000. 73.57% of the stock is owned by institutional investors.

Trending Headlines about CSX

Here are the key news stories impacting CSX this week:

• Positive Sentiment: Robert W. Baird raised its price target on CSX to $53 from $49 and kept an outperform rating, signaling confidence in further upside for the railroad operator. Benzinga article
• Positive Sentiment: CSX saw unusually strong options activity, with call volume running well above normal, which can indicate bullish trader sentiment and expectations for continued gains.
• Neutral Sentiment: CSX continues to attract broad market attention after a strong multi-month run, including a large outperformance versus the S&P 500, though that also raises the bar for future results. Yahoo Finance article
• Neutral Sentiment: Recent news items about CSX train accidents and railroad crossing closures are primarily operational/public-safety headlines and do not clearly change the earnings outlook, but they may keep some investors cautious.
• Negative Sentiment: A recent article titled “3 Reasons to Sell CSX” reflects a bearish viewpoint and could pressure sentiment if investors focus on valuation after the stock’s big run. Yahoo Finance article

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.