CSX shares pop after new CEO Harrison buys $15 million in stock

CSX freight lines run through center city Philadelphia
Paul Marotta | Getty Images
CSX freight lines run through center city Philadelphia

Shares of railroad operator CSX jumped Tuesday after the firm's newly minted CEO disclosed a $15 million stock purchase.

Hunter Harrison, who was named the company's chief executive in March, bought 300,000 CSX shares at $50.20 per share on Monday, according to an SEC filing.

"The purchase sets $50.00 as an important price for Harrison; he's now invested $15.1 million in cash just above that price and he has nine million options -- half of which are performance-based -- struck just below that price that he was granted as an inducement for joining CSX," said Ben Silverman, director of research at insider trading research firm InsiderScore, in a note.

The stock closed up over 1 percent on Tuesday.

CSX intraday chart

Source: FactSet

CSX has gotten off to a roaring start this year, with its stock skyrocketing more than 40 percent and easily outperforming the Dow Transports index. The company also has high expectations for the rest of the year.

Last Thursday, the company revised its full-year guidance, saying that investors can expect 25 percent earnings per share growth over the 2016 figure of $1.81. That would mean earnings of $2.26 per share, surpassing the Street's expectation for $2.09 per share.

—CNBC's Mack Hogan contributed to this report.

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