Investors Buy Large Volume of Call Options on First Internet Bancorp (NASDAQ:INBK)

Key Points

• Call-option activity surged: Investors purchased 4,968 call contracts, compared with an average daily volume of just 22, signaling unusually strong speculative interest in First Internet Bancorp.
• Shares rose 12.1% to $29.47 after the bank reported quarterly EPS of $0.27, beating the $0.15 consensus estimate. Management also raised full-year 2026 EPS guidance to $2.35–$2.45.
• Analyst sentiment remains mixed: Benchmark raised its price target to $35 with a buy rating, while Piper Sandler maintained a neutral view; the overall consensus rating is Hold with a $29.38 target price.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) was the target of unusually large options trading activity on Friday. Investors purchased 4,968 call options on the company. This represents an increase of approximately 22,482% compared to the average daily volume of 22 call options.

Analysts Set New Price Targets

Several brokerages have recently commented on INBK. Weiss Ratings upgraded First Internet Bancorp from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 8th. Wall Street Zen upgraded First Internet Bancorp from a "hold" rating to a "buy" rating in a research report on Saturday, June 6th. Piper Sandler upped their price target on First Internet Bancorp from $26.00 to $29.50 and gave the company a "neutral" rating in a research note on Friday. Benchmark boosted their price target on shares of First Internet Bancorp from $33.00 to $35.00 and gave the stock a "buy" rating in a research note on Friday. Finally, Keefe, Bruyette & Woods raised their price target on First Internet Bancorp from $23.00 to $24.00 and gave the stock a "market perform" rating in a research report on Friday, May 1st. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $29.38.

First Internet Bancorp Stock Up 12.1%

INBK traded up $3.18 during trading hours on Friday, hitting $29.47. 248,030 shares of the company's stock were exchanged, compared to its average volume of 52,450. The stock has a market cap of $256.89 million, a price-to-earnings ratio of -7.65 and a beta of 0.83. First Internet Bancorp has a 1-year low of $17.05 and a 1-year high of $30.05. The stock's 50-day moving average is $25.98 and its two-hundred day moving average is $23.30. The company has a quick ratio of 0.87, a current ratio of 0.88 and a debt-to-equity ratio of 0.96.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The bank reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.12. First Internet Bancorp had a negative return on equity of 1.14% and a negative net margin of 9.60%.The firm had revenue of $41.12 million for the quarter, compared to analyst estimates of $43.83 million. First Internet Bancorp has set its FY 2026 guidance at 2.350-2.450 EPS. Sell-side analysts predict that First Internet Bancorp will post 1.98 earnings per share for the current fiscal year.

First Internet Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a $0.06 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.24 annualized dividend and a dividend yield of 0.8%. First Internet Bancorp's dividend payout ratio is presently -6.23%.

Institutional Investors Weigh In On First Internet Bancorp

Several hedge funds have recently bought and sold shares of the stock. Versant Capital Management Inc increased its stake in shares of First Internet Bancorp by 7.3% during the second quarter. Versant Capital Management Inc now owns 5,533 shares of the bank's stock worth $154,000 after purchasing an additional 376 shares during the period. Bank of America Corp DE boosted its stake in First Internet Bancorp by 18.6% in the 1st quarter. Bank of America Corp DE now owns 61,022 shares of the bank's stock valued at $1,244,000 after purchasing an additional 9,563 shares during the period. Quantinno Capital Management LP grew its holdings in First Internet Bancorp by 14.5% in the 1st quarter. Quantinno Capital Management LP now owns 162,421 shares of the bank's stock valued at $3,310,000 after buying an additional 20,582 shares in the last quarter. Public Employees Retirement System of Ohio grew its holdings in First Internet Bancorp by 35.9% in the 1st quarter. Public Employees Retirement System of Ohio now owns 8,184 shares of the bank's stock valued at $167,000 after buying an additional 2,160 shares in the last quarter. Finally, Sei Investments Co. bought a new position in First Internet Bancorp during the 1st quarter worth $245,000. 65.46% of the stock is currently owned by institutional investors and hedge funds.

First Internet Bancorp News Roundup

Here are the key news stories impacting First Internet Bancorp this week:

• Positive Sentiment: Second-quarter diluted EPS rose to $0.27 from $0.02 a year earlier, surpassing Wall Street estimates. Net income increased to $2.4 million, while revenue grew 23% year over year to $41.1 million. First Internet Bancorp Q2 net income rises to $2.4 million
• Positive Sentiment: Management raised its full-year 2026 diluted EPS outlook to $2.35–$2.45, above the approximately $2.10 analyst consensus, signaling improved expectations for profitability.
• Positive Sentiment: Credit metrics improved: the provision for credit losses declined to $13.4 million from $16.3 million in the prior quarter, while nonperforming loans fell to 1.58% of total loans from 1.63%. Loan balances also increased approximately 1% sequentially. First Internet Bancorp Reports Second Quarter 2026 Results
• Positive Sentiment: Benchmark raised its price target from $33 to $35 and maintained a “buy” rating, implying meaningful additional upside based on the cited reference price. The Fly analyst update
• Positive Sentiment: Call-option purchases surged to 4,968 contracts versus a typical 22, suggesting unusually bullish speculative positioning, though options activity is not a fundamental indicator.
• Neutral Sentiment: Piper Sandler raised its target from $26 to $29.50 but kept a “neutral” rating, indicating limited upside at the cited trading level. Benzinga analyst update
• Negative Sentiment: Quarterly revenue of $41.1 million came in below the $43.8 million consensus estimate, and deposits declined 3% sequentially to $4.8 billion. These issues may raise concerns about growth and funding costs.

About First Internet Bancorp

First Internet Bancorp is the bank holding company for First Internet Bank of Indiana, a pioneer in digital banking in the United States. Established with a focus on online-only operations, the company offers fully integrated, web-based financial solutions without the overhead of physical branches. Headquartered in Indianapolis, Indiana, First Internet Bancorp leverages technology to deliver streamlined banking services to customers across the country.

The company's core offerings include a range of deposit products such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs) and individual retirement accounts (IRAs).

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