Is CSX Corporation (CSX) A Stock To Snag At A Bargain?

On November 29, 2019, CSX Corporation (NASDAQ:CSX) shares lost -0.49% or -0.35 points to close at $71.54 with a thin trading volume of 1.478 million shares. It opened the trading session at $71.6, the shares rose to $71.88 and dropped to $71.265, the range by which the price of stock traded the whole day. The company now has a market cap of $56.1 billion and currently has 784.14 million outstanding shares. CSX Corporation (CSX) stock has accumulated 0.69 percent of market value in 21 trading days.

CSX stock’s trailing 3-year beta is 1.22, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $4.19 share in the trailing 52 weeks. The stock’s value surged 15.15 percent year to date (YTD) compared to a decline of -1.66 percent in 52 week’s period. The firm’s shares are still trading -11.38 percent below its 1-year high of $80.73 and 22.35 percent up from 52-week low of $58.47. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

CSX Corporation (CSX) is most likely going to rise 6.91 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $85-month high price target. This represents a whopping 18.81 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $77, which means a return possibility of 7.63 percent in comparison with the closing price of the stock of $71.54 on November 29. The lowest price set for the stock is $55 — just above -23.12 percent from CSX share price now.

Past records have indicated that shares in CSX Corporation declined on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of CSX’s Q4 earnings on January 15. Analysts are predicting revenue to suffer decline of -5 percent to $2.98B in the financial fourth quarter, while EPS will soar by about 0.99 percent to $1.02 per share. In the last quarter, it earnings of $1.02 per share came worse than the $1.10608, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.98B, missing the $2.98B analysts had expected. Earnings are seen to rise by 78.8 percent this year, 5.85 percent in the coming year and the trend continues by 9.09 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at CSX Corporation (NASDAQ:CSX) and observe the pattern. The earliest insider trade happened on 10/24/2019. Halverson Steven T parted with a total of 39.81 thousand shares of the firm at average share price of $71.65. The total amount for the sale was set at $2.85 million. On completing this exchange, the Director account balance was 89.59 thousand shares. The stock lost -0.15 percent from that insider sale. On 10/17/2019, Mantle Ridge LP, Director, did a sale of 3.45 million shares at a price of $67.91 per share. This got rid of 234.55 million shares from the insider’s fortune and the stock experienced a 5.35 percent rally in price since the news became public. This exchange saw 6.92 million shares get out from the Director account.

On 06/11/2019, EVP & CLO Goldman Nathan D recorded a sale transaction valued at $556.5 thousand. The sale at $79.5 a share has eliminated 7 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -10.01 percent decrease since the transaction reporting date. The company insider is left with 79.7 thousand shares remaining in the account. Williams Angela C, who works as VP & Controller at the company, performed a sale of 9.56 thousand shares in a transaction worth $756.58 thousand. The disposal recorded on 04/18/2019 was priced at $79.14 per share. The stock price plunged -9.6 percent since the transaction. Williams Angela C currently holds a stake of 7.6 thousand in CSX stock which is worth $543.92 thousand after the insider selling.

The stock is lingering around the initial support level of $71.24. After this, the following support is at the zone of $70.95. Up until the time the CSX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.34 on the daily chart, and this may be a cause for concern. In case the price goes below $70.95 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $71.86 level may cause a pull-back move approaching $72.18 mark.

CSX Corporation (CSX) shares are trading at a P/E ratio of 17.1 times earnings posted in the trailing 12 months. The industry CSX deals with has an average P/E of 19.9. Its P/B ratio is standing at 4.7X compared to the 4.1 industry average. It is additionally sporting a 4.8 on the Price-to-Sales ratio, compared to the industry’s P/S average of 4.5. CSX Corporation has a 76.8% gross profit margin, with its operating margin around 41.5%. Alongside this, the company’s net profit margin currently stands at 27.9%.