CSX (CSX) stock rallied on Monday after the railroad company announced the departure of President and CEO Joe Hinrichs. Hinrichs has also resigned from the company’s Board of Directors. This resignation came alongside pressure from activist investor Ancora Holdings Group, which has called for change at the company. Specifically, the investor sought the departure of Hinrichs due to the company’s poor performance.
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CSX didn’t nix Hinrichs without a replacement ready. Steve Angel has taken over as the President and CEO of CSX, and has also taken a seat on its Board of Directors. Angel is a veteran leader with 45 years of experience across several public companies. His ability to generate strong shareholder returns was a key reason why CSX named him its new CEO.
Angel commented on his new role at CSX in a company release. He said, “It’s a privilege to join a company with such a proud history and an incredibly dedicated team of over 23,000 employees who are working tirelessly to connect industries, communities, and economies. My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders.”
CSX Stock Movement Today
CSX stock was up 3.82% on Monday after the company announced its latest leadership change. This movement added to the shares’ 10.76% gain year-to-date. Even so, the stock remained down 1.51% over the past 12 months.
Is CSX Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for CSX is Moderate Buy, based on 15 Buy and four Hold ratings over the past three months. With that comes an average CSX stock price target of $38, representing a potential 8% upside for the shares.
