B of A Securities Upgrades CSX

Fintel reports that on September 8, 2023, B of A Securities upgraded their outlook for CSX (NASDAQ:CSX) from Neutral to Buy.

Analyst Price Forecast Suggests 23.53% Upside

As of August 30, 2023, the average one-year price target for CSX is 37.00. The forecasts range from a low of 25.25 to a high of $43.05. The average price target represents an increase of 23.53% from its latest reported closing price of 29.95.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for CSX is 14,874MM, a decrease of 1.04%. The projected annual non-GAAP EPS is 1.92.

CSX Declares $0.11 Dividend

On July 12, 2023 the company declared a regular quarterly dividend of $0.11 per share ($0.44 annualized). Shareholders of record as of August 31, 2023 will receive the payment on September 15, 2023. Previously, the company paid $0.11 per share.

At the current share price of $29.95 / share, the stock’s dividend yield is 1.47%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.29%, the lowest has been 0.37%, and the highest has been 2.18%. The standard deviation of yields is 0.18 (n=236).

The current dividend yield is 1.02 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.21. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.27%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2432 funds or institutions reporting positions in CSX. This is an increase of 3 owner(s) or 0.12% in the last quarter. Average portfolio weight of all funds dedicated to CSX is 0.33%, an increase of 4.87%. Total shares owned by institutions decreased in the last three months by 0.87% to 1,670,544K shares. The put/call ratio of CSX is 0.86, indicating a bullish outlook.

What are Other Shareholders Doing?

Capital World Investors holds 87,778K shares representing 4.38% ownership of the company. In it’s prior filing, the firm reported owning 86,398K shares, representing an increase of 1.57%. The firm increased its portfolio allocation in CSX by 7.68% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 63,417K shares representing 3.16% ownership of the company. In it’s prior filing, the firm reported owning 63,855K shares, representing a decrease of 0.69%. The firm increased its portfolio allocation in CSX by 4.36% over the last quarter.

Soroban Capital Partners holds 52,593K shares representing 2.62% ownership of the company. No change in the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 48,409K shares representing 2.41% ownership of the company. In it’s prior filing, the firm reported owning 49,058K shares, representing a decrease of 1.34%. The firm increased its portfolio allocation in CSX by 1.79% over the last quarter.

AWSHX – WASHINGTON MUTUAL INVESTORS FUND holds 47,876K shares representing 2.39% ownership of the company. In it’s prior filing, the firm reported owning 38,656K shares, representing an increase of 19.26%. The firm increased its portfolio allocation in CSX by 23.22% over the last quarter.

CSX Background Information
(This description is provided by the company.)

CSX Corporation, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.

This article originally appeared on Fintel