CSX Corporation (NASDAQ: CSX)
CSX Corporation wasn’t off to the best of starts in the market today. As a matter of fact, at the opening bell, the stock was trading well into the red. In the early morning hours, the stock pushed toward the green and eventually broke the line before following back into the abyss. Throughout the day, we saw more negative. That is, until minutes ago when the stock started to spike. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to CSX ahead.
What We’re Seeing From CSX
As mentioned above, CSX Corporation wasn’t having the best day in the market today. After starting the day in the red, the stock quickly pushed for the green. Once it made it to the green, it fell back to the red and beyond. Nonetheless, minutes ago, the stock started to spike, making it into the green yet again. At the moment (2:14), CSX is trading at $49.58 per share after a gain of $0.10 per share or 0.20% thus far today.
Why The Stock Is Spiking
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on CSX. As soon as we received the alert, the CNA Finance team started working to see why the stock was spiking upward. It didn’t take long to dig up the story. It seems as though the gains are the result of excitement surrounding activist moves.
At the moment, stories are breaking surrounding management changes due to a push from an activist investor. According to the stories, Mantle Ridge has pushed CSX Corporation to agree to hire Hunter Harrison as CEO of the company. Also, the activists have nominated 5 new directors to the company. As a result, investors are excited as these changes will likely lead to growth in the long run.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CSX. In particular, we’re interested in the changes that are to come under the new management and other possible activist actions. Nonetheless, we’ll keep a close eye on the story and be sure to bring it to you as it breaks!
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[Image Courtesy of Wikimedia]