Investors Buy Large Volume of Call Options on Baxter International (NYSE:BAX)

Baxter International Inc. (NYSE:BAX) saw unusually large options trading activity on Tuesday. Investors acquired 20,523 call options on the stock. This is an increase of approximately 505% compared to the average daily volume of 3,392 call options.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on BAX. Argus raised shares of Baxter International from a “hold” rating to a “buy” rating in a research report on Monday, February 24th. Barclays lifted their price objective on Baxter International from $39.00 to $41.00 and gave the company an “overweight” rating in a research note on Monday, March 10th. Morgan Stanley decreased their target price on Baxter International from $30.00 to $28.00 and set an “underweight” rating on the stock in a research note on Monday, May 5th. JPMorgan Chase & Co. dropped their target price on Baxter International from $38.00 to $36.00 and set a “neutral” rating for the company in a research report on Friday, February 21st. Finally, The Goldman Sachs Group initiated coverage on shares of Baxter International in a research note on Wednesday, February 26th. They issued a “buy” rating and a $42.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, Baxter International has a consensus rating of “Hold” and a consensus price target of $37.25.

Baxter International Price Performance

Baxter International stock opened at $31.71 on Wednesday. The company has a current ratio of 1.43, a quick ratio of 1.09 and a debt-to-equity ratio of 1.31. The company has a fifty day simple moving average of $30.05 and a 200-day simple moving average of $31.39. The stock has a market cap of $16.27 billion, a P/E ratio of -24.77, a price-to-earnings-growth ratio of 0.93 and a beta of 0.61. Baxter International has a 12-month low of $26.25 and a 12-month high of $40.49.

Baxter International (NYSE:BAX) last announced its quarterly earnings results on Thursday, May 1st. The medical instruments supplier reported $0.62 EPS for the quarter, topping the consensus estimate of $0.48 by $0.14. Baxter International had a negative net margin of 5.05% and a positive return on equity of 16.67%. The firm had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.59 billion. During the same period last year, the business earned $0.65 EPS. Baxter International’s revenue for the quarter was up 5.4% compared to the same quarter last year. Equities analysts expect that Baxter International will post 2.48 EPS for the current fiscal year.

Baxter International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 1st. Shareholders of record on Friday, May 30th will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 2.14%. The ex-dividend date of this dividend is Friday, May 30th. Baxter International’s payout ratio is -61.82%.

Institutional Trading of Baxter International

Several hedge funds have recently modified their holdings of the business. Sumitomo Mitsui Trust Group Inc. raised its position in Baxter International by 1.9% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,160,666 shares of the medical instruments supplier’s stock worth $33,845,000 after acquiring an additional 21,592 shares in the last quarter. Nicholas Hoffman & Company LLC. acquired a new stake in shares of Baxter International in the fourth quarter valued at about $907,000. Bank of New York Mellon Corp boosted its holdings in Baxter International by 22.3% during the fourth quarter. Bank of New York Mellon Corp now owns 15,359,040 shares of the medical instruments supplier’s stock worth $447,870,000 after buying an additional 2,803,920 shares in the last quarter. Dodge & Cox grew its position in Baxter International by 13.0% during the fourth quarter. Dodge & Cox now owns 50,377,294 shares of the medical instruments supplier’s stock worth $1,469,002,000 after buying an additional 5,779,100 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in Baxter International by 40.4% in the fourth quarter. Russell Investments Group Ltd. now owns 1,745,709 shares of the medical instruments supplier’s stock valued at $50,904,000 after buying an additional 502,370 shares in the last quarter. 90.19% of the stock is owned by institutional investors and hedge funds.

Baxter International Company Profile

Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories.