Switch Sees Unusually High Options Volume (SWCH)
Switch Inc (NYSE:SWCH) saw unusually large options trading on Wednesday. Investors bought 3,146 call options on the company. This is an increase of 2,180% compared to the average volume of 138 call options.
In related news, major shareholder Intel Capital Corp sold 1,727,555 shares of the firm’s stock in a transaction on Thursday, September 20th. The stock was sold at an average price of $10.98, for a total value of $18,968,553.90. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Thomas A. Thomas bought 22,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 30th. The stock was bought at an average cost of $11.52 per share, for a total transaction of $253,440.00. The disclosure for this purchase can be found here. 12.64% of the stock is currently owned by company insiders.
Institutional investors have recently modified their holdings of the company. Nisa Investment Advisors LLC purchased a new position in shares of Switch during the second quarter valued at about $103,000. First Republic Investment Management Inc. purchased a new position in shares of Switch during the second quarter valued at about $157,000. The Manufacturers Life Insurance Company grew its position in shares of Switch by 111.5% during the first quarter. The Manufacturers Life Insurance Company now owns 14,096 shares of the company’s stock valued at $224,000 after purchasing an additional 7,430 shares in the last quarter. Sustainable Insight Capital Management LLC purchased a new position in shares of Switch during the second quarter valued at about $173,000. Finally, Baird Financial Group Inc. purchased a new position in shares of Switch during the second quarter valued at about $193,000. Hedge funds and other institutional investors own 16.40% of the company’s stock.
Switch (NYSE:SWCH) last posted its quarterly earnings results on Tuesday, November 13th. The company reported $0.02 EPS for the quarter, missing the Zacks’ consensus estimate of $0.03 by ($0.01). The business had revenue of $102.80 million for the quarter, compared to the consensus estimate of $102.84 million. Switch had a negative net margin of 16.29% and a negative return on equity of 1.84%. Switch’s revenue was up 5.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.08 earnings per share. As a group, analysts expect that Switch will post 0.08 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 6th. Stockholders of record on Monday, November 26th will be given a dividend of $0.0147 per share. The ex-dividend date is Friday, November 23rd. This represents a $0.06 dividend on an annualized basis and a dividend yield of 0.72%.
A number of equities research analysts have commented on the company. Credit Suisse Group set a $14.00 price target on Switch and gave the company a “buy” rating in a report on Wednesday, November 14th. BMO Capital Markets reissued a “buy” rating and set a $20.00 price target on shares of Switch in a report on Monday, August 13th. Stifel Nicolaus decreased their price target on Switch from $15.00 to $13.00 and set a “buy” rating on the stock in a report on Tuesday, August 14th. William Blair reissued an “outperform” rating on shares of Switch in a report on Tuesday, November 13th. Finally, Raymond James cut Switch from an “outperform” rating to a “market perform” rating and set a $17.00 price target on the stock. in a report on Monday, August 13th. One research analyst has rated the stock with a sell rating, four have given a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $15.50.
Switch, Inc, through its subsidiary, Switch, Ltd., provides colocation space and related services to technology and digital media companies, cloud and managed service providers, financial institutions, and telecommunications providers that conduct critical business on the Internet. The company develops and operates data centers in Nevada, Michigan, and Georgia.
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