Stock Traders Buy High Volume of Switch Call Options (NYSE:SWCH)

Switch Inc (NYSE:SWCH) was the target of some unusual options trading activity on Wednesday. Traders purchased 4,719 call options on the stock. This represents an increase of 790% compared to the average daily volume of 530 call options.

Shares of NYSE:SWCH opened at $14.01 on Friday. The stock has a market capitalization of $3.39 billion, a price-to-earnings ratio of 175.15 and a beta of 0.59. Switch has a 1-year low of $10.00 and a 1-year high of $17.83. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.52 and a current ratio of 0.52. The company has a 50 day moving average price of $14.94 and a 200 day moving average price of $15.31.

Switch (NYSE:SWCH) last issued its earnings results on Thursday, February 27th. The company reported $0.04 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.05 by ($0.01). The business had revenue of $120.50 million for the quarter, compared to the consensus estimate of $119.40 million. Switch had a return on equity of 3.26% and a net margin of 1.75%. The company’s quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.05 earnings per share. On average, sell-side analysts expect that Switch will post 0.2 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Thursday, March 12th were given a $0.029 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $0.12 annualized dividend and a dividend yield of 0.83%. Switch’s dividend payout ratio (DPR) is presently 80.00%.

In other news, major shareholder Peter M. Thomas sold 50,000 shares of the stock in a transaction that occurred on Tuesday, February 4th. The shares were sold at an average price of $16.48, for a total value of $824,000.00. Following the completion of the transaction, the insider now directly owns 850,500 shares in the company, valued at $14,016,240. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Melissa Young sold 54,778 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $15.11, for a total transaction of $827,695.58. Following the completion of the transaction, the insider now owns 120,907 shares of the company’s stock, valued at $1,826,904.77. The disclosure for this sale can be found here. Insiders sold 515,576 shares of company stock valued at $7,358,630 over the last quarter. Insiders own 28.39% of the company’s stock.

Large investors have recently modified their holdings of the stock. California State Teachers Retirement System lifted its position in shares of Switch by 1.8% in the 3rd quarter. California State Teachers Retirement System now owns 94,964 shares of the company’s stock valued at $1,483,000 after acquiring an additional 1,657 shares in the last quarter. Millennium Management LLC lifted its position in shares of Switch by 19.5% in the 3rd quarter. Millennium Management LLC now owns 1,376,376 shares of the company’s stock valued at $21,498,000 after acquiring an additional 224,286 shares in the last quarter. Voya Investment Management LLC lifted its position in shares of Switch by 488.4% in the 3rd quarter. Voya Investment Management LLC now owns 95,574 shares of the company’s stock valued at $1,493,000 after acquiring an additional 79,332 shares in the last quarter. State Street Corp lifted its position in shares of Switch by 20.8% in the 3rd quarter. State Street Corp now owns 739,234 shares of the company’s stock valued at $11,547,000 after acquiring an additional 127,180 shares in the last quarter. Finally, California Public Employees Retirement System lifted its position in shares of Switch by 36.2% in the 3rd quarter. California Public Employees Retirement System now owns 138,941 shares of the company’s stock valued at $2,170,000 after acquiring an additional 36,941 shares in the last quarter. Institutional investors and hedge funds own 24.30% of the company’s stock.

A number of analysts recently weighed in on the stock. Credit Suisse Group raised their target price on shares of Switch from $19.00 to $21.00 and gave the stock an “outperform” rating in a report on Wednesday, February 12th. ValuEngine upgraded shares of Switch from a “sell” rating to a “hold” rating in a report on Tuesday, March 3rd. William Blair restated an “outperform” rating on shares of Switch in a report on Friday, February 28th. Stifel Nicolaus raised their target price on shares of Switch from $17.50 to $20.00 and gave the stock a “buy” rating in a report on Tuesday, February 18th. Finally, Wells Fargo & Co raised their target price on shares of Switch from $16.50 to $18.00 and gave the stock an “overweight” rating in a report on Friday, February 28th. Three analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and an average price target of $18.29.

About Switch

Switch, Inc, through its subsidiary, Switch, Ltd., provides colocation space and related services primarily to technology and digital media companies in the United States. It develops and operates data centers in Nevada and Michigan. The company also serves cloud and managed service providers, financial institutions, IT and software providers, government agencies, network and telecommunications providers, and others that conduct critical business on the Internet.

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