Baxter International Sees Unusually Large Options Volume (NYSE:BAX)

Key Points

• Options activity surged: Traders purchased 7,292 call options on Baxter International, 107% above the average call volume of 3,522 contracts.
• Baxter shares rose 6.3% to $27.80, near the company’s 52-week high, following strong quarterly results. The company reported adjusted EPS of $0.56 versus $0.37 expected and revenue of $2.96 billion versus $2.80 billion expected.
• Analyst sentiment remains cautious, with a consensus rating of “Reduce” and an average price target of $22.45, below the current share price.

Baxter International Inc. (NYSE:BAX - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders acquired 7,292 call options on the stock. This is an increase of 107% compared to the average volume of 3,522 call options.

Baxter International Trading Up 6.3%

Shares of NYSE:BAX traded up $1.65 during midday trading on Monday, reaching $27.80. 2,696,152 shares of the company's stock were exchanged, compared to its average volume of 8,350,267. The firm's 50 day simple moving average is $21.34 and its two-hundred day simple moving average is $19.60. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.95 and a quick ratio of 1.32. The stock has a market cap of $14.38 billion, a price-to-earnings ratio of -13.42, a P/E/G ratio of 3.97 and a beta of 0.59. Baxter International has a fifty-two week low of $15.73 and a fifty-two week high of $30.00.

Baxter International (NYSE:BAX - Get Free Report) last posted its earnings results on Thursday, July 30th. The medical instruments supplier reported $0.56 EPS for the quarter, beating analysts' consensus estimates of $0.37 by $0.19. The company had revenue of $2.96 billion for the quarter, compared to analysts' expectations of $2.80 billion. Baxter International had a negative net margin of 9.27% and a positive return on equity of 16.57%. Baxter International's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.59 earnings per share. Baxter International has set its FY 2026 guidance at 1.950-2.150 EPS. As a group, sell-side analysts forecast that Baxter International will post 2.04 EPS for the current fiscal year.

Baxter International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, August 28th will be issued a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Friday, August 28th. Baxter International's dividend payout ratio is currently -1.93%.

Hedge Funds Weigh In On Baxter International

Hedge funds have recently made changes to their positions in the stock. Imprint Wealth LLC purchased a new stake in Baxter International in the third quarter valued at approximately $27,000. Basepoint Wealth LLC purchased a new position in shares of Baxter International during the fourth quarter worth $26,000. MUFG Securities EMEA plc acquired a new stake in shares of Baxter International in the second quarter valued at $46,000. Los Angeles Capital Management LLC acquired a new stake in shares of Baxter International in the fourth quarter valued at $46,000. Finally, Versant Capital Management Inc raised its holdings in shares of Baxter International by 552.2% in the 2nd quarter. Versant Capital Management Inc now owns 2,413 shares of the medical instruments supplier's stock valued at $51,000 after buying an additional 2,043 shares during the period. Hedge funds and other institutional investors own 90.19% of the company's stock.

Analysts Set New Price Targets

BAX has been the subject of several research reports. Evercore dropped their price objective on shares of Baxter International from $23.00 to $22.00 and set an "outperform" rating for the company in a research note on Monday, April 6th. Barclays raised their target price on shares of Baxter International from $25.00 to $27.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Zacks Research cut Baxter International from a "hold" rating to a "strong sell" rating in a report on Monday, July 13th. Wells Fargo & Company upped their price target on Baxter International from $19.00 to $23.00 and gave the company an "equal weight" rating in a research report on Friday. Finally, The Goldman Sachs Group increased their price target on Baxter International from $19.00 to $21.00 and gave the company a "neutral" rating in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $22.45.

About Baxter International

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company's primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter's offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.

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