CSX Stock Pulls Back to 200-Day After CEO Takes Medical Leave

Analysts are very bullish on the transportation stock, too

Josh Selway

Dec 15, 2017 at 10:24 AM

Transportation stock CSX Corporation (NASDAQ:CSX) is sliding today, last seen down 7.9% at $52.76, following news the company's CEO Hunter Harrison, who was hired earlier this year, is taking a medical leave. This comes just two days after the shares hit a record high of $58.35, and despite the pullback, they're still up 47% year-to-date. Plus, CSX earlier bottomed right above the 200-day moving average, which contained their pullback last month, as well.

csx stock

Meanwhile, the security's decline could be bad news for options traders. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 3.74. Not only does this show almost four call options have been bought to open for every put, but the reading ranks just 11 percentage points from a 12-month high.

During this time, the February 62.50 call saw the largest increase in open interest by far, roughly doubling the next closest strike. However, it was all sell-to-open activity here, so traders are hoping CSX stock holds below $62.50 in the months ahead. It's certainly worth noting, too, that this call is already seeing heavy action today.

Finally, if this front-office development holds back the transportation stock, it could result in bearish analyst attention, since brokerage firms are currently quite bullish. By the numbers, 14 of 19 analysts have "buy" or "strong buy" ratings.

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