CSX (NASDAQ:CSX) Shares Gap Down Following Weak Earnings

CSX Co. (NASDAQ:CSX)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $35.47, but opened at $33.94. CSX shares last traded at $33.76, with a volume of 3,043,252 shares trading hands.

The transportation company reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). The company had revenue of $3.62 billion for the quarter, compared to the consensus estimate of $3.68 billion. CSX had a return on equity of 29.11% and a net margin of 24.52%. The firm’s quarterly revenue was up 1.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.42 earnings per share.

CSX Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 13th. Shareholders of record on Friday, November 29th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.42%. The ex-dividend date is Friday, November 29th. CSX’s payout ratio is currently 26.37%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Benchmark reaffirmed a “buy” rating and set a $40.00 target price on shares of CSX in a research note on Wednesday, August 7th. Barclays reduced their target price on shares of CSX from $41.00 to $40.00 and set an “overweight” rating for the company in a report on Wednesday, September 25th. Royal Bank of Canada dropped their price target on CSX from $36.00 to $35.00 and set a “sector perform” rating on the stock in a report on Thursday. Sanford C. Bernstein lifted their target price on CSX from $35.00 to $36.00 and gave the stock a “market perform” rating in a report on Monday, July 8th. Finally, JPMorgan Chase & Co. upped their target price on CSX from $39.00 to $42.00 and gave the company an “overweight” rating in a report on Tuesday, August 6th. Seven analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $39.06.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CSX. Itau Unibanco Holding S.A. bought a new position in CSX in the second quarter valued at approximately $26,000. MFA Wealth Advisors LLC bought a new position in shares of CSX in the 2nd quarter worth $27,000. Financial Synergies Wealth Advisors Inc. acquired a new stake in shares of CSX during the first quarter worth $29,000. Fairscale Capital LLC bought a new stake in CSX in the second quarter valued at about $32,000. Finally, Strategic Financial Concepts LLC acquired a new position in CSX in the second quarter valued at about $33,000. 73.57% of the stock is currently owned by institutional investors and hedge funds.

CSX Stock Performance

The company has a quick ratio of 1.01, a current ratio of 1.16 and a debt-to-equity ratio of 1.42. The stock has a market cap of $66.00 billion, a P/E ratio of 18.55, a PEG ratio of 1.90 and a beta of 1.19. The stock has a fifty day simple moving average of $34.05 and a 200-day simple moving average of $33.99.

About CSX

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.