CSX (NASDAQ:CSX) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of CSX (NASDAQ:CSX) from a hold rating to a sell rating in a research report report published on Monday, Zacks.com reports. The firm currently has $83.00 target price 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.”

Several other research analysts have also recently commented on CSX. BidaskClub cut shares of Zynerba Pharmaceuticals from a buy rating to a hold rating in a report on Wednesday, June 26th. SNS Securities cut shares of CSX from a positive rating to a neutral rating in a report on Wednesday, April 3rd. Deutsche Bank upgraded shares of CYBERAGENT INC/ADR from a hold rating to a buy rating in a report on Wednesday, June 12th. ValuEngine cut shares of Acceleron Pharma from a strong-buy rating to a buy rating in a report on Thursday, April 18th. Finally, TD Securities cut shares of Western Forest Products from a buy rating to a hold rating and decreased their target price for the stock from C$2.25 to C$2.00 in a report on Wednesday, April 17th. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and nine have given a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $79.18.

Shares of CSX opened at $77.25 on Monday. The firm has a 50-day moving average of $77.03. The company has a market cap of $62.51 billion, a price-to-earnings ratio of 20.12, a PEG ratio of 1.37 and a beta of 1.23. The company has a quick ratio of 1.68, a current ratio of 1.81 and a debt-to-equity ratio of 1.27. CSX has a 52-week low of $58.47 and a 52-week high of $80.73.

CSX (NASDAQ:CSX) last announced its earnings results on Tuesday, April 16th. The transportation company reported $1.02 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.91 by $0.11. CSX had a net margin of 27.84% and a return on equity of 26.13%. The firm had revenue of $3.01 billion during the quarter, compared to analyst estimates of $3 billion. During the same quarter in the prior year, the firm posted $0.78 EPS. CSX’s revenue was up 4.8% compared to the same quarter last year. As a group, research analysts anticipate that CSX will post 4.32 earnings per share for the current fiscal year.

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

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

Several institutional investors have recently made changes to their positions in the company. Van ECK Associates Corp boosted its position in shares of CSX by 3.5% during the fourth quarter. Van ECK Associates Corp now owns 12,077 shares of the transportation company’s stock valued at $750,000 after buying an additional 410 shares during the period. Blueshift Asset Management LLC bought a new stake in shares of CSX during the fourth quarter valued at approximately $205,000. Bessemer Group Inc. raised its stake in shares of CSX by 41.6% during the fourth quarter. Bessemer Group Inc. now owns 6,657 shares of the transportation company’s stock valued at $415,000 after acquiring an additional 1,957 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of CSX by 0.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,311,053 shares of the transportation company’s stock valued at $267,854,000 after acquiring an additional 30,225 shares in the last quarter. Finally, Berman Capital Advisors LLC bought a new position in CSX in the fourth quarter worth approximately $35,000. Institutional investors and hedge funds own 75.68% of the company’s stock.

About CSX

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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