CSX (CSX) Rating Increased to Buy at Zacks Investment Research

CSX (NASDAQ:CSX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm presently has a $65.00 target price on the transportation company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 13.06% from the stock’s previous close.

According to Zacks, “Shares of CSX have outperformed its industry in a year. Ushering in further good news, the company reported better-than-expected earnings per share in the fourth quarter of 2017. The bottom line also expanded on a year-over-year basis owing to lower costs. Additionally, improvement in operating ratio is a positive for the company.  The Precision Scheduled Railroading system, implemented by the company's former CEO — E. Hunter Harrison — who expired in December 2017, seems to be paying off. The company's efforts to reward shareholders through dividends and buybacks are impressive. However, the company's struggles on the top line front concern us. Sluggish automotive production is a challenge for the company. “

CSX has been the subject of a number of other reports. Robert W. Baird reissued a “buy” rating and issued a $59.00 price target on shares of CSX in a research report on Tuesday, January 9th. TD Securities lowered shares of CSX from a “buy” rating to a “hold” rating and reduced their price target for the stock from $63.00 to $54.00 in a research report on Monday, December 18th. Morgan Stanley set a $51.00 price target on shares of CSX and gave the stock a “sell” rating in a research report on Wednesday. Credit Suisse Group raised their price objective on shares of CSX from $60.00 to $61.00 and gave the company an “outperform” rating in a research report on Wednesday, October 18th. Finally, BidaskClub lowered shares of CSX from a “hold” rating to a “sell” rating in a research report on Thursday, November 2nd. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seventeen have issued a buy rating to the company’s stock. CSX has a consensus rating of “Buy” and a consensus target price of $60.38.

CSX (NASDAQ:CSX) traded down $0.56 during midday trading on Friday, hitting $57.49. 7,490,190 shares of the stock were exchanged, compared to its average volume of 8,800,000. The company has a quick ratio of 0.86, a current ratio of 1.01 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $50,880.00, a price-to-earnings ratio of 9.47, a price-to-earnings-growth ratio of 1.44 and a beta of 1.35. CSX has a 1-year low of $42.88 and a 1-year high of $60.04.

CSX (NASDAQ:CSX) last posted its quarterly earnings results on Tuesday, January 16th. The transportation company reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.08. The business had revenue of $2.86 billion during the quarter, compared to analyst estimates of $2.89 billion. CSX had a net margin of 47.96% and a return on equity of 17.16%. The firm’s revenue was down 5.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.49 earnings per share. equities research analysts predict that CSX will post 3.03 EPS for the current fiscal year.

CSX declared that its Board of Directors has approved a stock repurchase plan on Wednesday, October 25th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the transportation company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

In related news, Director Gary Keith Anderson purchased 5,000 shares of the stock in a transaction on Friday, November 24th. The shares were bought at an average price of $2,300.00 per share, for a total transaction of $11,500,000.00. Company insiders own 4.79% of the company’s stock.

Hedge funds have recently made changes to their positions in the business. First Command Financial Services Inc. grew its stake in shares of CSX by 130.0% in the fourth quarter. First Command Financial Services Inc. now owns 2,123 shares of the transportation company’s stock worth $117,000 after acquiring an additional 1,200 shares during the last quarter. Valeo Financial Advisors LLC acquired a new stake in shares of CSX in the third quarter worth $196,000. Laurel Wealth Advisors Inc. acquired a new stake in shares of CSX in the second quarter worth $226,000. Americafirst Capital Management LLC acquired a new stake in shares of CSX in the third quarter worth $308,000. Finally, Sterling Capital Management LLC grew its stake in shares of CSX by 32.0% in the third quarter. Sterling Capital Management LLC now owns 5,876 shares of the transportation company’s stock worth $319,000 after acquiring an additional 1,423 shares during the last quarter. Institutional investors own 70.17% of the company’s stock.

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CSX Company Profile

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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