5 Supply Chain Stocks to Buy Now According to Billionaire Jim Simons

3. CSX Corporation (NASDAQ:CSX)

Renaissance Technologies’ Stake Value: $239 million

Percentage of Renaissance Technologies’ 13F Portfolio: 0.28%

Number of Hedge Fund Holders: 72

CSX Corporation (NASDAQ:CSX) is one of the world’s leading suppliers of rail-based freight transportation in the US and Canada. A total of 72 hedge funds own shares in the company as of the first quarter of 2022 with the total equity ownership by these funds amounting to over $6 billion. 

CSX corporation has a dividend yield of 1.35% as of June 24. The shareholders of record on May 31 were paid the quarterly dividend of $0.10 per share on June 15. 

On April 18, CSX was downgraded to Hold from Buy with a price target of $38, down from $41, by TD Securities analyst Cherilyn Radbourne who sees rising risks to sector volumes owing to both supply-chain constraints and crew resources. While CSX Corporation has been ahead of the curve up to this point on the labor front, the analyst is increasingly concerned that new crews may be completing training just as downside risks to volume mount. 

The leading stakeholder in the company is Soroban Capital Partners which as of Q1 2022, holds shares in the company worth over $1.5 billion.

ClearBridge Investments discussed the company in their Q4 2021 investor letter. Here’s what was said:

“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operators CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”