Traders Purchase High Volume of CSX Call Options (NASDAQ:CSX)

Key Points

• CSX Corporation experienced a significant spike in call options trading, with a purchase of 96,882 call options, marking a 683% increase from the typical volume.
• Several analysts have upgraded their ratings on CSX, with the average price target rising to $37.00, indicating a consensus of "Moderate Buy."
• CSX recently declared a quarterly dividend of $0.13 per share, reflecting a 1.45% dividend yield on an annualized basis.

CSX Corporation (NASDAQ:CSX - Get Free Report) was the target of unusually large options trading activity on Friday. Stock traders bought 96,882 call options on the company. This is an increase of approximately 683% compared to the typical volume of 12,373 call options.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on CSX shares. Sanford C. Bernstein reiterated a "market perform" rating and issued a $36.00 price target (up from $33.00) on shares of CSX in a research note on Tuesday, July 8th. Susquehanna restated a "neutral" rating and set a $35.00 price objective on shares of CSX in a research note on Tuesday, June 24th. Wells Fargo & Company raised their price target on shares of CSX from $35.00 to $37.00 and gave the company an "equal weight" rating in a report on Thursday. Benchmark raised their price objective on shares of CSX from $37.00 to $40.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Citigroup raised their price objective on shares of CSX from $36.00 to $38.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. Six analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, CSX has a consensus rating of "Moderate Buy" and an average price target of $37.00.

Institutional Investors Weigh In On CSX

Several large investors have recently modified their holdings of CSX. Associated Banc Corp grew its holdings in CSX by 0.9% during the first quarter. Associated Banc Corp now owns 40,384 shares of the transportation company's stock worth $1,189,000 after acquiring an additional 356 shares during the period. Portside Wealth Group LLC grew its holdings in CSX by 1.3% during the first quarter. Portside Wealth Group LLC now owns 27,335 shares of the transportation company's stock worth $804,000 after acquiring an additional 361 shares during the period. Ullmann Wealth Partners Group LLC grew its holdings in CSX by 1.3% during the first quarter. Ullmann Wealth Partners Group LLC now owns 29,276 shares of the transportation company's stock worth $862,000 after acquiring an additional 363 shares during the period. Family Legacy Inc. grew its holdings in CSX by 0.6% during the fourth quarter. Family Legacy Inc. now owns 68,009 shares of the transportation company's stock worth $2,190,000 after acquiring an additional 375 shares during the period. Finally, LRI Investments LLC grew its holdings in CSX by 4.8% during the first quarter. LRI Investments LLC now owns 8,254 shares of the transportation company's stock worth $243,000 after acquiring an additional 375 shares during the period. Hedge funds and other institutional investors own 73.57% of the company's stock.

CSX Stock Performance

Shares of CSX opened at $35.76 on Friday. The company has a quick ratio of 0.75, a current ratio of 0.77 and a debt-to-equity ratio of 1.50. CSX has a 52-week low of $26.22 and a 52-week high of $37.10. The stock has a 50 day moving average price of $32.69 and a 200 day moving average price of $31.26. The company has a market capitalization of $66.67 billion, a price-to-earnings ratio of 22.07, a price-to-earnings-growth ratio of 3.13 and a beta of 1.23.

CSX (NASDAQ:CSX - Get Free Report) last issued its quarterly earnings data 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. CSX had a return on equity of 25.48% and a net margin of 21.92%. The company had revenue of $3.57 billion during the quarter, compared to analysts' expectations of $3.57 billion. During the same quarter in the previous year, the business earned $0.49 earnings per share. The firm's revenue for the quarter was down 3.5% on a year-over-year basis. Research analysts predict that CSX will post 1.83 EPS for the current fiscal year.

CSX Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders 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 dividend yield of 1.45%. The ex-dividend date of this dividend is Friday, August 29th. CSX's dividend payout ratio (DPR) is presently 32.10%.

CSX Company Profile

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.

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