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

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

In other news, Director Thomas A. Thomas sold 30,000 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $14.69, for a total transaction of $440,700.00. Following the completion of the transaction, the director now directly owns 924,135 shares of the company’s stock, valued at approximately $13,575,543.15. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Peter M. Thomas sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, February 4th. The stock was sold at an average price of $16.48, for a total transaction of $824,000.00. Following the transaction, the insider now directly owns 850,500 shares of the company’s stock, valued at $14,016,240. The disclosure for this sale can be found here. Insiders sold a total of 515,576 shares of company stock worth $7,358,630 over the last 90 days. Company insiders own 28.39% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in SWCH. California Public Employees Retirement System raised its stake in shares of Switch by 36.2% in the third quarter. California Public Employees Retirement System now owns 138,941 shares of the company’s stock worth $2,170,000 after acquiring an additional 36,941 shares during the last quarter. Voya Investment Management LLC grew its position in shares of Switch by 488.4% during the 3rd quarter. Voya Investment Management LLC now owns 95,574 shares of the company’s stock worth $1,493,000 after buying an additional 79,332 shares during the period. State Street Corp grew its holdings in Switch by 20.8% during the third quarter. State Street Corp now owns 739,234 shares of the company’s stock valued at $11,547,000 after purchasing an additional 127,180 shares during the period. California State Teachers Retirement System grew its holdings in Switch by 1.8% during the third quarter. California State Teachers Retirement System now owns 94,964 shares of the company’s stock valued at $1,483,000 after purchasing an additional 1,657 shares during the period. Finally, Barclays PLC grew its holdings in Switch by 249.7% during the third quarter. Barclays PLC now owns 31,975 shares of the company’s stock valued at $500,000 after purchasing an additional 22,832 shares during the period. 24.30% of the stock is owned by institutional investors.

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

Switch (NYSE:SWCH) last announced 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). Switch had a return on equity of 3.26% and a net margin of 1.75%. The company had revenue of $120.50 million during the quarter, compared to the consensus estimate of $119.40 million. During the same period in the prior year, the firm posted $0.05 earnings per share. The company’s revenue was up 16.8% on a year-over-year basis. As a group, equities research analysts forecast that Switch will post 0.2 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Thursday, March 12th were paid a $0.029 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.83%. The ex-dividend date of this dividend was Wednesday, March 11th. Switch’s dividend payout ratio is presently 80.00%.

Several equities analysts recently issued reports on the stock. Zacks Investment Research downgraded shares of Switch from a “buy” rating to a “hold” rating in a report on Thursday, January 9th. ValuEngine raised shares of Switch from a “sell” rating to a “hold” rating in a report on Tuesday, March 3rd. JPMorgan Chase & Co. lifted their price target on shares of Switch from $16.00 to $17.00 and gave the company a “neutral” rating in a report on Friday, February 28th. Stifel Nicolaus lifted their price target on shares of Switch from $17.50 to $20.00 and gave the company a “buy” rating in a report on Tuesday, February 18th. Finally, Wells Fargo & Co lifted their price target on shares of Switch from $16.50 to $18.00 and gave the company an “overweight” rating in a report on Friday, February 28th. Three analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $18.29.

Switch Company Profile

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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