Signet Jewelers Sees Unusually High Options Volume (NYSE:SIG)

Key Points

• Unusually high options activity: Investors bought 13,903 call options on Signet (NYSE:SIG) on Monday, a roughly 515% increase versus the typical daily call volume of 2,260.
• Quarterly results and stock snapshot: Signet reported $6.25 EPS, beating the $6.11 consensus while revenue was roughly flat (-0.3% year-over-year); the stock traded at $95.97, with a market cap of $3.85 billion and a P/E of 13.48.
• Dividend increase and market views: The company raised its quarterly dividend to $0.35 (ex-dividend April 24), and analysts hold a consensus "Moderate Buy" with an average target of $112 amid notable institutional buying, including increased stakes by Goldman Sachs and RBC.

Signet Jewelers Limited (NYSE:SIG - Get Free Report) saw unusually large options trading on Monday. Stock investors bought 13,903 call options on the company. This represents an increase of approximately 515% compared to the typical daily volume of 2,260 call options.

Signet Jewelers Stock Performance

Shares of NYSE:SIG traded up $1.39 during trading on Monday, hitting $95.97. The company's stock had a trading volume of 457,078 shares, compared to its average volume of 929,185. Signet Jewelers has a fifty-two week low of $52.14 and a fifty-two week high of $110.20. The stock's 50-day moving average price is $90.73 and its two-hundred day moving average price is $92.76. The company has a market capitalization of $3.85 billion, a PE ratio of 13.48, a PEG ratio of 1.09 and a beta of 1.25.

Signet Jewelers (NYSE:SIG - Get Free Report) last released its quarterly earnings results on Thursday, March 19th. The company reported $6.25 EPS for the quarter, topping the consensus estimate of $6.11 by $0.14. Signet Jewelers had a return on equity of 22.22% and a net margin of 4.32%.The business had revenue of ($4,468.50) million for the quarter, compared to analysts' expectations of $2.33 billion. During the same quarter in the previous year, the firm posted $6.62 earnings per share. The company's revenue was down .3% compared to the same quarter last year. On average, equities analysts predict that Signet Jewelers will post 8.73 earnings per share for the current fiscal year.

Signet Jewelers Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Friday, April 24th will be issued a $0.35 dividend. This is an increase from Signet Jewelers's previous quarterly dividend of $0.32. This represents a $1.40 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Friday, April 24th. Signet Jewelers's dividend payout ratio is presently 17.95%.

Institutional Trading of Signet Jewelers

Several hedge funds and other institutional investors have recently bought and sold shares of SIG. Royal Bank of Canada increased its holdings in Signet Jewelers by 87.2% in the first quarter. Royal Bank of Canada now owns 17,564 shares of the company's stock valued at $1,020,000 after buying an additional 8,183 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in Signet Jewelers by 33.5% in the first quarter. Goldman Sachs Group Inc. now owns 849,692 shares of the company's stock valued at $49,333,000 after buying an additional 213,365 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Signet Jewelers by 9.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 122,573 shares of the company's stock valued at $7,117,000 after buying an additional 10,964 shares during the last quarter. Prudential Financial Inc. increased its holdings in Signet Jewelers by 55.4% in the second quarter. Prudential Financial Inc. now owns 5,935 shares of the company's stock valued at $472,000 after buying an additional 2,116 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in Signet Jewelers by 171.2% in the second quarter. EverSource Wealth Advisors LLC now owns 678 shares of the company's stock valued at $54,000 after buying an additional 428 shares during the last quarter.

Wall Street Analyst Weigh In

SIG has been the topic of a number of recent research reports. Wells Fargo & Company boosted their price objective on Signet Jewelers from $90.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Friday, March 20th. The Goldman Sachs Group upgraded Signet Jewelers from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, January 21st. Wall Street Zen cut Signet Jewelers from a "strong-buy" rating to a "hold" rating in a research note on Sunday, March 22nd. Jefferies Financial Group restated a "buy" rating on shares of Signet Jewelers in a research note on Monday, March 9th. Finally, Royal Bank Of Canada upgraded Signet Jewelers to a "hold" rating in a research note on Monday, March 30th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $112.00.

About Signet Jewelers

Signet Jewelers Ltd is the world's largest retailer of diamond jewelry, operating a diversified network of retail stores across the United States, Canada, the United Kingdom and Ireland. Its portfolio includes well-established banners such as Kay Jewelers, Zales, Jared The Galleria of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda, offering customers a range of shopping environments from suburban malls to high-street locations.

The company's product assortment encompasses engagement rings, wedding bands, fine fashion jewelry and timepieces, complemented by services including jewelry cleaning, repairs, appraisals and extended care plans.

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