Ancora applauds CSX leadership change, expects M&A activity

Published 29/09/2025, 17:38
Ancora applauds CSX leadership change, expects M&A activity

CLEVELAND - Investment firm Ancora Holdings Group has expressed support for CSX Corp’s (NASDAQ:CSX) recent leadership change, according to a press release statement issued Monday. The railroad giant, with a market capitalization of $65.5 billion, is a prominent player in the Ground Transportation industry according to InvestingPro data.

The statement from Ancora, a CSX shareholder, commends the railroad company’s board for terminating former CEO Joe Hinrichs and appointing Steve Angel as his replacement. Ancora’s Chairman and CEO Fredrick DiSanto and Ancora Alternatives President James Chadwick characterized Hinrichs’ tenure as "value-destructive" and praised Angel’s appointment as "an initial step in the right direction." CSX has maintained strong financial performance with $14.15 billion in revenue and $6.6 billion in EBITDA over the last twelve months.

The investment firm cited Angel’s M&A experience as particularly valuable given what it describes as "the new era of the transcontinental railroad." Ancora referenced recent positive statements from President Donald Trump regarding the Union Pacific-Norfolk Southern transaction as creating an environment where "CSX and other Class I railroads have no choice but to embrace the industry’s new realities."

Ancora indicated it expects CSX’s new leadership to be "far more proactive" in pursuing merger opportunities and restoring operational excellence. The firm also disclosed it continues to purchase CSX shares and hopes for a "strengthened relationship" with the company. InvestingPro analysis shows CSX has maintained dividend payments for 45 consecutive years, with an 8.3% dividend growth in the last twelve months. Get access to 10+ additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.

The statement follows Ancora’s August 2025 letter to CSX’s board that urged the termination of Hinrichs if he could not quickly position the company to compete effectively with railroads embracing transcontinental service.

Ancora Holdings Group, founded in 2003, offers investment advisory, wealth management and other financial services. Its alternative asset management division, Ancora Alternatives, invests across activism, multi-strategy and commodities.

In other recent news, CSX has experienced several notable developments. Jefferies increased its price target for CSX to $40 from $38, maintaining a Buy rating, citing strong momentum and improved service levels. Meanwhile, RBC Capital upgraded CSX from Sector Perform to Outperform, raising its price target to $39, based on operational improvements and its positioning amid potential mergers. UBS reiterated its Buy rating with a $41 price target, despite a recent stock decline attributed to Berkshire Hathaway’s disinterest in railroad acquisitions.

Additionally, CSX appointed Steve Angel as its new President and CEO, effective September 28, 2025, succeeding Joe Hinrichs. Angel, with extensive leadership experience, previously served as CEO of Linde plc and Praxair. BMO Capital maintained its Market Perform rating and a $38 price target following this leadership change. These updates highlight CSX’s strategic shifts and analyst perspectives as the company progresses into the year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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