Murphy & Mullick Capital Management Corp Acquires New Shares in CSX Co. (NASDAQ:CSX)

In a recent filing with the Securities and Exchange Commission (SEC), Murphy & Mullick Capital Management Corp revealed that it has made a new investment in CSX Co. (NASDAQ:CSX). During the fourth quarter, the firm acquired a total of 12,779 shares of the transportation giant, with the purchase amounting to approximately $412,000.

Other Institutional Investments

CSX has attracted attention from various other institutional investors. For instance, Bank of New York Mellon Corp increased its stake in CSX by an impressive 40.5% in the fourth quarter. The firm now holds 23,350,087 shares of CSX, valued at about $753.5 million, after buying an additional 6,730,316 shares in that period. Similarly, Mitsubishi UFJ Trust & Banking Corp expanded its holdings significantly by 471.9%, acquiring 5,568,624 additional shares to own 6,748,661 shares worth around $217.8 million.

Other notable investments include Raymond James Financial Inc., which bought a new stake valued at $85.96 million, and Perpetual Ltd, which made a new investment of about $83.3 million. Additionally, Sound Shore Management Inc. CT purchased a new stake valued at approximately $67.83 million. Overall, institutional investors now control 73.57% of CSX's stock.

Analyst Insights

Research on CSX has been quite active, with several analysts adjusting their price targets and ratings. For instance, on January 8, Susquehanna cut its price target from $40.00 to $39.00 while maintaining a "positive" rating. Similarly, on January 24, BMO Capital Markets reduced its target from $40.00 to $38.00, giving an "outperform" rating. Notably, Raymond James reaffirmed an "outperform" rating as well, issuing a $37.00 target price (down from $38.00).

Loop Capital made a more significant adjustment by lowering CSX from a "buy" rating to a "hold" rating, also reducing the price target from $40.00 to $34.00 in its report. In contrast, Stephens reaffirmed an "overweight" rating and set a price objective at $38.00. Currently, seven analysts rate the stock as a hold, while thirteen suggest a buy, resulting in an average rating of "Moderate Buy" with a target price of $37.00 according to MarketBeat data.

Current Stock Performance

As of Wednesday, CSX stock was priced at $29.53. The stock has seen a 50-day moving average of $31.93 and a 200-day moving average of $33.28. Over the past year, CSX has fluctuated between a low of $28.98 and a high of $37.18. The company exhibits a debt-to-equity ratio of 1.43, a quick ratio of 1.23, and a current ratio of 0.86. With a market capitalization of $55.95 billion, CSX has a P/E ratio of 16.50 and a beta of 1.25.

Recent Earnings Report

On January 23, CSX released its quarterly earnings report, which showed earnings of $0.42 per share, falling short of the analysts' expectations of $0.44. The company recorded a return on equity of 28.15%, along with a net margin of 23.95%. Analysts are projecting that CSX will achieve an EPS of 1.83 for the current fiscal year.

Dividend Update

In addition to its investment activities, CSX has recently announced an increase in its quarterly dividend. Shareholders received a dividend of $0.13 per share on March 14, having recorded their shares by February 28. This increase is a step up from the previous dividend of $0.12 and represents an annualized dividend of $0.52, yielding 1.76%. The current dividend payout ratio stands at 29.05%.

About CSX Corporation

CSX Corporation, through its subsidiaries, delivers rail-based freight transportation services. The company offers various solutions, including the transportation of intermodal containers and trailers, bulk commodities, and rail-to-truck transfers. It also carries chemicals, food products, minerals, and automotive items, among others, and facilitates the transportation of coal and related materials to power plants and industrial sites.

Investment, Stocks, Acquisition