CSX Target of Unusually Large Options Trading (NASDAQ:CSX)

Key Points

• CSX Corporation saw a significant increase in call option trading with 31,405 options purchased on Monday, representing a 66% increase from the average volume.
• Despite the strong options activity, CSX's stock price fell by 5.0% during trading hours, reaching $32.8550.
• The company declared a quarterly dividend of $0.13 per share, with a payment date set for September 15th, and a current yield of 1.6%.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the recipient of some unusual options trading activity on Monday. Stock investors bought 31,405 call options on the stock. Thisisanincreaseof66% compared to the average daily volume of 18,890 call options.

CSX Stock Down 0.8%

Shares of NASDAQ CSX traded down $0.25 on Friday, reaching $32.29. 817,823 shares of the company's stock traded hands, compared to its average volume of 17,021,805. CSX has a 12 month low of $26.22 and a 12 month high of $37.25. The business's 50 day simple moving average is $34.36 and its two-hundred day simple moving average is $31.67. The company has a market cap of $60.19 billion, a price-to-earnings ratio of 20.07, a price-to-earnings-growth ratio of 2.43 and a beta of 1.25. The company has a quick ratio of 0.63, a current ratio of 0.77 and a debt-to-equity ratio of 1.50.

CSX (NASDAQ:CSX - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The transportation company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.57 billion. CSX had a net margin of 21.92% and a return on equity of 25.48%. The business's revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.49 earnings per share. As a group, equities research analysts forecast that CSX will post 1.83 EPS for the current fiscal year.

CSX Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, August 29th. CSX's dividend payout ratio (DPR) is currently 32.10%.

Wall Street Analyst Weigh In

CSX has been the subject of several recent analyst reports. JPMorgan Chase & Co. upped their price objective on shares of CSX from $34.00 to $41.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Baird R W raised shares of CSX to a "strong-buy" rating in a research note on Tuesday, July 1st. TD Cowen raised shares of CSX from a "hold" rating to a "buy" rating and increased their price target for the stock from $32.00 to $45.00 in a research note on Monday, July 21st. Susquehanna reissued a "neutral" rating and issued a $35.00 price target on shares of CSX in a research note on Tuesday, June 24th. Finally, Deutsche Bank Aktiengesellschaft raised shares of CSX from a "hold" rating to a "buy" rating and set a $40.00 price target for the company in a research note on Thursday, July 24th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, CSX currently has an average rating of "Moderate Buy" and a consensus target price of $37.00.

Institutional Trading of CSX

Several institutional investors have recently added to or reduced their stakes in the business. Captrust Financial Advisors boosted its stake in CSX by 0.8% during the 2nd quarter. Captrust Financial Advisors now owns 405,828 shares of the transportation company's stock valued at $13,242,000 after purchasing an additional 3,162 shares during the last quarter. WFA of San Diego LLC purchased a new stake in CSX during the 2nd quarter valued at $28,000. BI Asset Management Fondsmaeglerselskab A S boosted its stake in CSX by 3.2% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 74,410 shares of the transportation company's stock valued at $2,428,000 after purchasing an additional 2,281 shares during the last quarter. SVB Wealth LLC purchased a new stake in CSX during the 2nd quarter valued at $807,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in CSX during the 2nd quarter valued at $25,000. 73.57% of the stock is currently owned by hedge funds and other institutional investors.

About CSX

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.