CSX Corporation (CSX) Stock Rating Upgraded by Zacks Investment Research
CSX Corporation (NASDAQ:CSX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Shares of CSX have outperformed its industry in a year. The company's third-quarter earnings improved 6.3% year over year. Revenues in the quarter also improved owing to core pricing gains. The improved coal scenario is also encouraging. Coal revenues improved 10% in third-quarter. Moreover, the company expects bottom line to expand between 20% and 25% in 2017 owing to improved effciencies. Additionally, Operating ratio in the high end of mid-60s is expected in 2017. However, the company reported lower than expected revenues in the third quarter. The year over year decline in merchandise revenues is also concerning. CSX's high debt levels is also worrisome. Sluggish automotive production presents a further challenge to the company. Automotive sector revenues declined 12% in the third quarter. The recent service disruptions also do not bode well for the company. “
A number of other equities research analysts have also recently issued reports on CSX. BidaskClub upgraded CSX Corporation from a “buy” rating to a “strong-buy” rating in a research note on Thursday, July 6th. Royal Bank Of Canada reiterated a “buy” rating and set a $65.00 price objective on shares of CSX Corporation in a research note on Wednesday, July 12th. Credit Suisse Group restated a “buy” rating and issued a $65.00 price target on shares of CSX Corporation in a research note on Friday, July 14th. J P Morgan Chase & Co dropped their price target on CSX Corporation from $60.00 to $58.00 and set an “overweight” rating on the stock in a research note on Thursday, July 20th. Finally, TD Securities dropped their price target on CSX Corporation from $64.00 to $63.00 and set a “buy” rating on the stock in a research note on Thursday, July 20th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seventeen have given a buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $56.76.
CSX Corporation (NASDAQ:CSX) last announced its quarterly earnings data on Tuesday, October 17th. The transportation company reported $0.51 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.51. CSX Corporation had a return on equity of 17.28% and a net margin of 15.45%. The company had revenue of $2.74 billion for the quarter, compared to analysts’ expectations of $2.77 billion. During the same quarter in the prior year, the business posted $0.48 EPS. The business’s revenue was up 1.2% compared to the same quarter last year.
CSX Corporation announced that its board has initiated a stock repurchase program on Tuesday, July 18th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the transportation company to repurchase up to 1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.
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Large investors have recently added to or reduced their stakes in the stock. United Services Automobile Association boosted its stake in CSX Corporation by 20.9% in the first quarter. United Services Automobile Association now owns 573,690 shares of the transportation company’s stock valued at $26,705,000 after buying an additional 99,118 shares in the last quarter. ClariVest Asset Management LLC acquired a new stake in CSX Corporation in the first quarter valued at about $13,531,000. Westwood Holdings Group Inc. boosted its stake in CSX Corporation by 0.7% in the first quarter. Westwood Holdings Group Inc. now owns 7,549 shares of the transportation company’s stock valued at $351,000 after buying an additional 49 shares in the last quarter. Stratos Wealth Partners LTD. boosted its stake in CSX Corporation by 10.6% in the first quarter. Stratos Wealth Partners LTD. now owns 13,720 shares of the transportation company’s stock valued at $639,000 after buying an additional 1,316 shares in the last quarter. Finally, TIAA CREF Investment Management LLC boosted its stake in CSX Corporation by 31.1% in the first quarter. TIAA CREF Investment Management LLC now owns 4,861,202 shares of the transportation company’s stock valued at $226,289,000 after buying an additional 1,152,841 shares in the last quarter. 71.17% of the stock is currently owned by institutional investors and hedge funds.
About CSX Corporation
CSX Corporation is a transportation company. The Company provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations.
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