Stock Traders Buy High Volume of Call Options on CSX (NASDAQ:CSX)

Key Points

• Unusually heavy call option activity hit CSX on Tuesday, with traders buying 23,447 call options, an 85% jump above the stock’s average daily call volume.
• Recent analyst sentiment remains positive: several firms raised price targets, and CSX now carries a Moderate Buy consensus rating with a $47.42 average target price.
• CSX shares were trading near their 12-month high at $48.51, while the company also reported solid quarterly results, beating earnings estimates and maintaining a 1.2% dividend yield.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the target of unusually large options trading on Tuesday. Stock traders acquired 23,447 call options on the stock. This represents an increase of 85% compared to the average daily volume of 12,676 call options.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on CSX. Argus increased their target price on shares of CSX from $42.00 to $52.00 and gave the stock a "buy" rating in a research note on Friday, May 22nd. Citigroup reiterated a "neutral" rating and set a $46.00 price target (up from $44.00) on shares of CSX in a research report on Thursday, April 23rd. Barclays reissued an "overweight" rating and issued a $55.00 price objective (up from $47.00) on shares of CSX in a report on Thursday, June 25th. Bank of America reiterated a "buy" rating and set a $53.00 target price (up from $51.00) on shares of CSX in a research report on Wednesday, June 17th. Finally, Rothschild & Co Redburn raised their price target on shares of CSX from $45.50 to $47.50 and gave the company a "buy" rating in a research note on Tuesday, April 28th. Sixteen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $47.42.

Insider Buying and Selling

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

Hedge funds have recently made changes to their positions in the company. Cohen & Steers Inc. increased its stake in shares of CSX by 1.2% during the fourth quarter. Cohen & Steers Inc. now owns 8,282,107 shares of the transportation company's stock worth $300,226,000 after acquiring 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 3rd quarter. Cbre Investment Management Listed Real Assets LLC now owns 944,946 shares of the transportation company's stock worth $33,555,000 after purchasing an additional 425,395 shares during the period. Captrust Financial Advisors lifted its holdings in shares of CSX by 4.4% in the 4th quarter. Captrust Financial Advisors now owns 423,312 shares of the transportation company's stock valued at $15,345,000 after buying an additional 18,025 shares during the period. Miller Howard Investments Inc. NY lifted its holdings in shares of CSX by 6.8% in the 1st quarter. Miller Howard Investments Inc. NY now owns 238,817 shares of the transportation company's stock valued at $9,803,000 after buying an additional 15,310 shares during the period. Finally, Rathbones Group PLC boosted its stake in shares of CSX by 20.6% in the third quarter. Rathbones Group PLC now owns 207,454 shares of the transportation company's stock valued at $7,367,000 after buying an additional 35,403 shares in the last quarter. Hedge funds and other institutional investors own 73.57% of the company's stock.

CSX Price Performance

Shares of NASDAQ:CSX traded down $0.30 during midday trading on Tuesday, hitting $48.51. The company's stock had a trading volume of 11,423,969 shares, compared to its average volume of 13,211,619. The business's 50 day simple moving average is $46.23 and its 200 day simple moving average is $41.77. 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 company has a market cap of $90.14 billion, a P/E ratio of 29.76, a price-to-earnings-growth ratio of 2.44 and a beta of 1.21. CSX has a 12-month low of $31.80 and a 12-month high of $49.29.

CSX (NASDAQ:CSX - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $3.48 billion during the quarter, compared to analysts' expectations of $3.50 billion. During the same quarter in the prior year, the company posted $0.34 EPS. The business's revenue for the quarter was up 1.7% on a year-over-year basis. On average, analysts forecast that CSX will post 1.9 EPS for the current year.

CSX Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were paid a $0.14 dividend. The ex-dividend date was Friday, May 29th. This represents a $0.56 dividend on an annualized basis and a yield of 1.2%. CSX's dividend payout ratio (DPR) is currently 34.36%.

About CSX

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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