CSX Corp. (CSX) Downgraded by Zacks Investment Research
CSX Corp. (NASDAQ:CSX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “CSX Corporation's earnings per share and revenues beat the Zacks Consensus Estimate in third quarter of 2016. However, both metrics declined on a year over year basis due to lower overall volumes primarily impacted by decline in coal shipments. The company also improved its balance sheet with lower long term debt compared to year end 2015. Despite prevailing macroeconomic challenges, the company continues to expect operating ratio in mid-60s range over the long term. Recently CSX discussed the company's long term strategy per which it plans on shifting away from coal revenues to service-sensitive merchandise and intermodal markets in the long-term. The company also mentioned that earnings per share in the fourth quarter are expected to be negatively impacted by $0.08 due to debt refinancing costs. However, the company's guidance for earnings remaining flat or slightly lower from the prior year quarter still stands.”
A number of other brokerages have also recently commented on CSX. Bank of America Corp. restated a “buy” rating and set a $32.00 target price on shares of CSX Corp. in a report on Monday, September 12th. Barclays PLC reaffirmed an “overweight” rating and issued a $35.00 price target on shares of CSX Corp. in a research report on Saturday, October 15th. Vertical Research started coverage on CSX Corp. in a research report on Tuesday, October 11th. They issued a “hold” rating on the stock. Deutsche Bank AG started coverage on CSX Corp. in a research report on Wednesday, November 2nd. They issued a “buy” rating and a $36.00 price target on the stock. Finally, Vetr lowered CSX Corp. from a “buy” rating to a “hold” rating and set a $33.60 price target on the stock. in a research report on Wednesday, November 9th. Three investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and fourteen have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $30.45.
Shares of CSX Corp. (NASDAQ:CSX) opened at 34.53 on Wednesday. The company has a 50 day moving average price of $31.20 and a 200 day moving average price of $28.36. CSX Corp. has a 12-month low of $21.33 and a 12-month high of $35.12. The company has a market capitalization of $32.34 billion, a P/E ratio of 19.22 and a beta of 1.11.
CSX Corp. (NASDAQ:CSX) last issued its earnings results on Wednesday, October 12th. The company reported $0.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. CSX Corp. had a return on equity of 14.79% and a net margin of 15.93%. The business earned $2.71 billion during the quarter. During the same period last year, the business earned $0.52 earnings per share. The firm’s revenue was down 7.8% compared to the same quarter last year. Equities analysts anticipate that CSX Corp. will post $1.79 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Wednesday, November 30th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.09%. The ex-dividend date is Monday, November 28th. CSX Corp.’s payout ratio is 40.00%.
In related news, Chairman Michael J. Ward sold 300,000 shares of the firm’s stock in a transaction that occurred on Monday, October 17th. The stock was sold at an average price of $30.97, for a total value of $9,291,000.00. Following the sale, the chairman now directly owns 198,742 shares in the company, valued at approximately $6,155,039.74. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, President Clarence W. Gooden sold 16,129 shares of the firm’s stock in a transaction that occurred on Thursday, October 6th. The shares were sold at an average price of $31.00, for a total value of $499,999.00. Following the completion of the sale, the president now owns 127,954 shares in the company, valued at $3,966,574. The disclosure for this sale can be found here. Insiders own 0.36% of the company’s stock.
Hedge funds have recently bought and sold shares of the stock. Marco Investment Management LLC boosted its stake in CSX Corp. by 0.3% in the third quarter. Marco Investment Management LLC now owns 8,410 shares of the company’s stock valued at $257,000 after buying an additional 22 shares in the last quarter. Jackson Grant Investment Advisers Inc. boosted its stake in CSX Corp. by 0.4% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 11,280 shares of the company’s stock valued at $294,000 after buying an additional 47 shares in the last quarter. IFC Holdings Incorporated FL boosted its stake in CSX Corp. by 0.5% in the second quarter. IFC Holdings Incorporated FL now owns 15,320 shares of the company’s stock valued at $401,000 after buying an additional 72 shares in the last quarter. Canandaigua National Bank & Trust Co. boosted its stake in CSX Corp. by 1.0% in the third quarter. Canandaigua National Bank & Trust Co. now owns 8,380 shares of the company’s stock valued at $256,000 after buying an additional 85 shares in the last quarter. Finally, Municipal Employees Retirement System of Michigan boosted its stake in CSX Corp. by 0.3% in the third quarter. Municipal Employees Retirement System of Michigan now owns 30,270 shares of the company’s stock valued at $923,000 after buying an additional 90 shares in the last quarter. Hedge funds and other institutional investors own 69.29% of the company’s stock.
CSX Corp. Company Profile
CSX Corporation, together with its subsidiaries, is a transportation company. The Company provides rail-based transportation services, including rail service and the transport of intermodal containers and trailers. The Company serves three lines of business, such as merchandise business, coal business and intermodal business.
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