CSX (NASDAQ:CSX) Shares Gap Down Following Weak Earnings

CSX Co. (NASDAQ:CSX)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $35.47, but opened at $33.94. CSX shares last traded at $33.76, with a volume of 3,043,252 shares traded.

The transportation company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.02). CSX had a net margin of 24.52% and a return on equity of 29.11%. The firm had revenue of $3.62 billion during the quarter, compared to analyst estimates of $3.68 billion. During the same period in the prior year, the company posted $0.42 earnings per share. The firm’s revenue for the quarter was up 1.3% compared to the same quarter last year.

CSX Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 13th. Investors of record on Friday, November 29th will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, November 29th. This represents a $0.48 annualized dividend and a yield of 1.42%. CSX’s payout ratio is 26.37%.

Analysts Set New Price Targets

CSX has been the subject of several recent research reports. Loop Capital lowered their price objective on shares of CSX from $43.00 to $42.00 and set a “buy” rating for the company in a research note on Thursday. Bank of America cut CSX from a “buy” rating to a “neutral” rating and set a $37.00 target price for the company. in a research note on Monday, July 8th. Sanford C. Bernstein lifted their price objective on CSX from $35.00 to $36.00 and gave the company a “market perform” rating in a research note on Monday, July 8th. BMO Capital Markets reduced their target price on shares of CSX from $40.00 to $39.00 and set an “outperform” rating on the stock in a report on Thursday. Finally, Royal Bank of Canada dropped their price objective on shares of CSX from $36.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Thursday. Seven analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $39.06.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. SageView Advisory Group LLC lifted its holdings in CSX by 13.2% in the fourth quarter. SageView Advisory Group LLC now owns 7,374 shares of the transportation company’s stock worth $264,000 after acquiring an additional 858 shares during the last quarter. Rise Advisors LLC lifted its stake in CSX by 287.7% in the first quarter. Rise Advisors LLC now owns 1,361 shares of the transportation company’s stock valued at $50,000 after buying an additional 1,010 shares during the last quarter. Czech National Bank boosted its holdings in shares of CSX by 0.5% during the first quarter. Czech National Bank now owns 347,702 shares of the transportation company’s stock valued at $12,889,000 after acquiring an additional 1,595 shares during the period. Wedmont Private Capital grew its position in shares of CSX by 7.9% during the first quarter. Wedmont Private Capital now owns 15,138 shares of the transportation company’s stock worth $544,000 after acquiring an additional 1,109 shares during the last quarter. Finally, Park Avenue Securities LLC increased its holdings in shares of CSX by 6.8% in the 1st quarter. Park Avenue Securities LLC now owns 76,256 shares of the transportation company’s stock worth $2,827,000 after acquiring an additional 4,823 shares during the period. 73.57% of the stock is currently owned by hedge funds and other institutional investors.

CSX Stock Performance

The company has a current ratio of 1.16, a quick ratio of 1.01 and a debt-to-equity ratio of 1.42. The stock has a market capitalization of $66.00 billion, a P/E ratio of 18.55, a P/E/G ratio of 1.90 and a beta of 1.19. The company’s 50-day moving average is $34.05 and its two-hundred day moving average is $33.99.

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.