Update (4:18 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- CSX (CSX) fell 6.81% to $27.24, down $1.99 from its previous close of $29.23, at the close of the trading day on Thursday after the company announced late Wednesday that fourth-quarter profit declined 5%.
The stock had a volume of 25,657,901, nearly five times its average of 5,465,690. It hit a high of $27.50 and a low of $26.76 for the day.
"We rate CSX CORP (CSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
The company earned $426 million, or 42 cents a share, in the quarter, down from year-earlier earnings of $449 million, or 44 cents a share. CSX cautioned that it could prove difficult for the railroad company to reach its own profit goal of double-digit growth in the next two years because of weak demand for coal and because the company's results from last year included multiple one-time large benefits.
CSX also announced Thursday that it would increase crude oil shipments in 2014. CEO Michael Ward told analysts on Thursday that CSX expects to increase its crude oil shipments by rail by 50% in 2014. Ward said CSX shipped about 46,000 loads of crude oil in 2013, mostly to refiners on the East Coast, as the company sent out one train per day for the year but increased that to two trains per day mostly in the fourth quarter. The company plans to run two trains per day "and then we will start positioning ourselves as more and more of the unloading points along the East Coast are developed," Ward said, according to Reuters.
Argus upgraded the stock to buy from hold and set the target price at $35. The firm based its upgrade on the increased crude oil shipments, grain harvests that nearly set company records, increased demand for consumer finished goods and stabilization of coal shipments.
TheStreet Ratings team rates CSX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation: