Valeo Financial Advisors LLC recently reduced its ownership stake in CSX Co. (NASDAQ:CSX) by 8.1% during the second quarter, as reported in their most recent filing with the Securities & Exchange Commission. The financial firm now holds 41,137 shares of CSX’s stock, after selling 3,609 shares during the quarter. As of the company’s latest SEC filing, these holdings are valued at approximately $1,403,000.
CSX is a transportation company listed on NASDAQ (NASDAQ:CSX), which reported its earnings results for the quarter ended July 20th. The company disclosed earnings per share (EPS) of $0.49, consistent with analysts’ consensus estimates. CSX also posted a return on equity of 32.82% and a net margin of 27.36%. However, the company’s revenue for the quarter amounted to $3.70 billion, slightly below analysts’ expectations of $3.73 billion. This represents a decline of 3.1% compared to the same period last year when CSX earned $0.50 earnings per share.
Looking ahead to the current fiscal year, it is anticipated that sell-side analysts predict CSX Co. will post an EPS of approximately 1.89.
At this point, it is essential to delve deeper into recent research reports that have been released regarding CSX’s performance and prospects moving forward in order to gain more comprehensive insights into the company’s standing and potential investment opportunities.
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Updated on: 23/09/2023
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CSX Stock Shows Resilience Amid Investor Confidence and Positive Valuation Metrics
In recent months, there have been notable changes in the holdings of CSX stock by institutional investors and hedge funds. Thompson Investment Management Inc. and Kalos Management Inc. both acquired new positions in CSX shares during the first quarter of this year, with each position valued at approximately $25,000. Additionally, TimeScale Financial Inc. significantly increased its stake in CSX by 1,391.8% during the same period, now owning 910 shares valued at $27,000 after purchasing an additional 849 shares.
Fortis Capital Advisors LLC also joined the trend of acquiring CSX stock during the fourth quarter of last year, with a purchase valued at about $27,000. Furthermore, Barrett & Company Inc. made its move during the first quarter of this year by acquiring a new stake in CSX worth approximately $31,000. These actions have intensified the already dominant presence of institutional investors and hedge funds in CSX’s stock ownership, which currently accounts for 72.76% of the company’s total shares.
CSX stock commenced trading on Friday at an opening price of $31.02 per share. Over the past year, it has demonstrated significant fluctuations between a low of $25.80 and a high of $34.38. The transportation company maintains a debt-to-equity ratio of 1.46 and possesses a current ratio of 1.42 along with a quick ratio of 1.21 to showcase its financial stability. In terms of market cap, CSX stands at an impressive $62.24 billion which is indicative of its substantial presence within the industry.
Taking into consideration valuation metrics like price-to-earnings (P/E) ratio is crucial when analyzing stocks’ attractiveness to investors who seek value-based opportunities rather than temporary market trends or other factors that might introduce unnecessary volatility into their investments.With respect to CSX’s P/E ratio stands at 15., demonstrating the company’s potential as an income generator for the shareholders. The P/E/G ratio of 2.72 further implies that the stock price is adequately aligned with its projected earnings growth, making it a viable investment option.
CSX recently declared its quarterly dividend, which was paid to stockholders on September 15th. With a dividend of $0.11 per share, this equates to an annualized dividend yield of 1.42%. Stockholders of record on August 31st were eligible for this dividend. The company’s dividend payout ratio (DPR) presently stands at 22.22%, indicating that CSX allocates a substantial portion of its profits towards rewarding its shareholders through dividends.
Several research firms have chimed in on their analysis of CSX and provided insights into its performance. Barclays, for instance, raised the stock’s price objective from $38.00 to $40.00 and assigned it an “overweight” rating in their research note released on Thursday. Conversely, Citigroup adjusted down CSX’s price objective from $39.00 to $38.00 but maintained a “buy” rating for the company in their research note published on July 21st.
Benchmark reaffirmed their “buy” rating and set a target price of $37.00 for CSX shares in their report released on July 21st, while Morgan Stanley echoed an “equal weight” rating and established a price objective of $25.00 during the same period.JPMorgan Chase & Co., too made strides by raising CSX’s price objective from $35.00 to $37.00 along with maintaining a “neutral” rating for the company in their report drafted on July 21st.
Overall, nine research analysts have issued “hold” ratings and fifteen have offered “buy” ratings for CSX stock, according to data compiled by Bloomberg.These assessments culminate in an average rating of “Moderate Buy” and a consensus target price of $35.52 for CSX, demonstrating the company’s potential for steady growth that attracts moderate to long-term investors seeking consistent returns.
In conclusion, the recent actions of institutional investors and hedge funds, coupled with CSX’s positive valuation metrics and reliable dividend program, indicate an air of confidence in the company’s future prospects. Furthermore, the various analyses and research discussions surrounding CSX serve as valuable information for potential investors to make informed decisions regarding their investment portfolios. As of September 22, 2023, CSX persists as an industry frontrunner within the transportation sector, poised to deliver sustainable value for its shareholders.