James Wainscott, a director at CSX Corp (CSX), recently picked up 10,000 shares. The buy increased his position by nearly 95 percent, and came to a total price of just over $330,000.
This marks the first insider buying at the company since the summer of 2020, and the first insider activity of any kind since last October. Otherwise, company directors and executives, have been sellers of shares though the end of last year.
Overall, insiders own just over 0.2 percent of the railroad.
Shares are essentially flat over the past year, as the stock hasn’t been as volatile as most names on the market in the past few months. However, earnings and revenue both rose by about 21 percent in the past year, and, having a regional monopoly on transportation, the railroad has a solid 30 percent profit margin.
Action to take: Dividend growth investors may like shares here. Besides trading at under 19 times forward earnings, shares yield 1.2 percent here, with a history of dividend growth over time.
For traders, the August $35 calls, last going for about $1.50, can likely deliver mid-to-high double-digit gains in the coming months. Shares have somewhat been rangebound, so if shares move to the upper $30 range, it may be prudent to take profits quickly.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.