CSX (NASDAQ:CSX) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of CSX (NASDAQ:CSX) from a hold rating to a sell rating in a research note released on Monday, Zacks.com reports. The brokerage currently has $83.00 price target on the transportation company’s stock.

According to Zacks, “We expect CSX's second-quarter 2019 results, scheduled to be revealed on Jul 16, to be aided by low costs. As in the first quarter, operating ratio (operating expenses as a percentage of revenues) is likely to improve in the second quarter too due to its cost-reduction efforts. We are are also impressed by the company's efforts to reward shareholders through dividends and buybacks. To this end, the company not only announced a 9.1% quarterly dividend hike to 24 cents per share and also approved a new repurchase program earlier this year. However, below-par performance of the company's intermodal unit is worrisome. In fact, the company estimates revenues to rise at a slower rate this year on anticipation of sluggish growth in its intermodal segment. Additionally, the company's high debt levels are concerning.”

Other analysts have also recently issued reports about the company. Credit Suisse Group reaffirmed an underperform rating on shares of MARKS & SPENCER/S in a research note on Wednesday, April 17th. Deutsche Bank upgraded CYBERAGENT INC/ADR from a hold rating to a buy rating in a research report on Wednesday, June 12th. ValuEngine lowered Acceleron Pharma from a strong-buy rating to a buy rating in a research report on Thursday, April 18th. Susquehanna Bancshares reiterated a neutral rating on shares of CSX in a research report on Wednesday, April 3rd. Finally, BMO Capital Markets started coverage on Yelp in a research report on Wednesday, April 17th. They issued an outperform rating for the company. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and nine have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $79.18.

Shares of CSX stock traded up $0.67 on Monday, reaching $77.25. The company had a trading volume of 2,674,175 shares, compared to its average volume of 4,468,727. The company has a current ratio of 1.81, a quick ratio of 1.68 and a debt-to-equity ratio of 1.27. The firm has a market capitalization of $62.51 billion, a PE ratio of 20.12, a PEG ratio of 1.37 and a beta of 1.23. The stock’s 50-day simple moving average is $77.03. CSX has a 12 month low of $58.47 and a 12 month high of $80.73.

CSX (NASDAQ:CSX) last announced its quarterly earnings results on Tuesday, April 16th. The transportation company reported $1.02 EPS for the quarter, beating analysts’ consensus estimates of $0.91 by $0.11. The company had revenue of $3.01 billion during the quarter, compared to analysts’ expectations of $3 billion. CSX had a return on equity of 26.13% and a net margin of 27.84%. CSX’s revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.78 EPS. Analysts anticipate that CSX will post 4.32 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 13th. Shareholders of record on Friday, August 30th will be given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.24%. CSX’s dividend payout ratio (DPR) is currently 25.00%.

In other CSX news, VP Angela C. Williams sold 9,560 shares of the company’s stock in a transaction that occurred on Thursday, April 18th. The stock was sold at an average price of $79.14, for a total transaction of $756,578.40. Following the completion of the transaction, the vice president now owns 14,607 shares of the company’s stock, valued at approximately $1,155,997.98. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Nathan D. Goldman sold 7,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 11th. The stock was sold at an average price of $79.50, for a total value of $556,500.00. Following the transaction, the executive vice president now directly owns 79,697 shares of the company’s stock, valued at approximately $6,335,911.50. The disclosure for this sale can be found here. Corporate insiders own 4.83% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of CSX in the 4th quarter valued at approximately $463,481,000. CI Investments Inc. acquired a new stake in shares of CSX in the 4th quarter valued at approximately $370,449,000. FMR LLC boosted its holdings in shares of CSX by 14.1% in the 4th quarter. FMR LLC now owns 23,161,058 shares of the transportation company’s stock valued at $1,438,997,000 after buying an additional 2,867,186 shares during the last quarter. Impala Asset Management LLC acquired a new stake in shares of CSX in the 1st quarter valued at approximately $88,463,000. Finally, Magellan Asset Management Ltd acquired a new stake in shares of CSX in the 1st quarter valued at approximately $73,749,000. 75.68% of the stock is owned by hedge funds and other institutional investors.

CSX Company Profile

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants.

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