CSX is one of the under-the-radar earnings winners today
CSX Corp (NASDAQ:CSX) is up 3.2% at $27.95 at last glance, after the transportation and logistics company’s strong third-quarter report. CSX reported adjusted earnings of 51 cents per share on revenue of $3.90 billion, beating analyst estimates of 49 cents per share on $3.74 billion.
Analysts chimed in with mixed and muted price-target adjustments after the event. JPMorgan Securities raised its price target by $2 and BofA Global Researched upped its by $1 to both land on $33, while Cowen & Company cut its price objective to $32 from $33, and Stifel lowered its own to $35 from $37. Currently, the 12-month consensus price target of $32.69 is a 17.9% premium to current levels. Of the 21 analysts in coverage, 12 carry a “buy” or better rating, with nine a “hold” or worse.
CSX has been consolidating between $26 and $29 since its recent Oct. 13 two-year low of $25.80, though pressure appears to be forming at the upper rung at $29. Year-to-date, the equity is down 26.1%.
Options bulls are targeting the stock after the event. So far, 5,022 calls have been exchanged — seven times the intraday average — in comparison to 621 puts. The October 27.50 call is the most popular, followed by the weekly 10/28 28-strike call, with new positions being opened at the latter.
Those options traders are in luck, considering CSX’s Schaeffer’s Volatility Scorecard (SVS) ranks at a relatively high 78 out of 100. This suggests Yeti stock has exceeded option traders’ volatility expectations during the last year.
Image and article originally from www.schaeffersresearch.com. Read the original article here.