Stock Traders Purchase High Volume of JD.com Call Options (NASDAQ:JD)

Key Points

• Unusually high call option activity: Traders purchased 217,649 call options on JD.com Wednesday, roughly a 268% increase versus the average daily volume of 59,163 calls.
• Dividend hike announced: JD.com raised its annual dividend to $1.00 (from $0.76), with an ex-dividend date of April 9 and a payment scheduled for April 29.
• Analyst outlook mixed but constructive: The stock's consensus rating is "Moderate Buy" with an average price target of $36.36, though several firms have recently trimmed targets (e.g., Susquehanna to $30, Barclays to $34).

JD.com, Inc. (NASDAQ:JD - Get Free Report) saw unusually large options trading activity on Wednesday. Traders purchased 217,649 call options on the stock. This represents an increase of approximately 268% compared to the average volume of 59,163 call options.

Hedge Funds Weigh In On JD.com

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Binnacle Investments Inc boosted its holdings in JD.com by 365.8% during the third quarter. Binnacle Investments Inc now owns 750 shares of the information services provider's stock worth $26,000 after buying an additional 589 shares during the last quarter. Root Financial Partners LLC boosted its position in shares of JD.com by 1,020.0% during the fourth quarter. Root Financial Partners LLC now owns 1,120 shares of the information services provider's stock worth $32,000 after purchasing an additional 1,020 shares in the last quarter. Stone House Investment Management LLC bought a new position in shares of JD.com during the third quarter worth $35,000. Assetmark Inc. boosted its position in shares of JD.com by 62.0% during the third quarter. Assetmark Inc. now owns 1,043 shares of the information services provider's stock worth $36,000 after purchasing an additional 399 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of JD.com by 191.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,241 shares of the information services provider's stock worth $36,000 after purchasing an additional 815 shares in the last quarter. Institutional investors own 15.98% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on JD shares. Susquehanna lowered their price objective on JD.com from $32.00 to $30.00 and set a "neutral" rating on the stock in a research report on Monday, March 9th. Zacks Research raised shares of JD.com from a "strong sell" rating to a "hold" rating in a research note on Monday, March 2nd. Arete Research set a $32.00 target price on shares of JD.com in a research note on Tuesday, December 9th. HSBC reissued a "buy" rating and issued a $37.00 target price on shares of JD.com in a research note on Monday, December 29th. Finally, Barclays lowered their target price on shares of JD.com from $41.00 to $34.00 and set an "overweight" rating on the stock in a research note on Monday, March 9th. Eleven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $36.36.

JD.com Price Performance

Shares of JD stock traded up $0.61 during trading hours on Wednesday, hitting $29.07. 8,538,873 shares of the company's stock were exchanged, compared to its average volume of 10,290,294. JD.com has a 52 week low of $24.51 and a 52 week high of $39.27. The stock has a market cap of $41.65 billion, a price-to-earnings ratio of 16.51, a price-to-earnings-growth ratio of 8.21 and a beta of 0.36. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.22 and a quick ratio of 0.91. The stock's 50-day moving average is $27.84 and its 200-day moving average is $29.95.

JD.com (NASDAQ:JD - Get Free Report) last released its quarterly earnings results on Saturday, February 14th. The information services provider reported $0.04 EPS for the quarter. The business had revenue of $50.35 billion for the quarter. JD.com had a net margin of 1.48% and a return on equity of 7.56%. As a group, research analysts forecast that JD.com will post 3.91 EPS for the current year.

JD.com Increases Dividend

The firm also recently disclosed an annual dividend, which will be paid on Wednesday, April 29th. Shareholders of record on Thursday, April 9th will be paid a $1.00 dividend. The ex-dividend date of this dividend is Thursday, April 9th. This is a boost from JD.com's previous annual dividend of $0.76. This represents a yield of 396.0%. JD.com's payout ratio is 55.68%.

About JD.com

JD.com is a major Chinese e-commerce company that operates a comprehensive online retail platform selling a wide range of consumer goods, including electronics, appliances, apparel, groceries and everyday household items. The company combines direct retailing—purchasing inventory and selling products itself—with a marketplace for third-party merchants, offering consumers both self-operated and third-party choices. In addition to its core retail business, JD.com has expanded into adjacent services such as digital marketplaces for cross-border commerce, online pharmacy and healthcare services, and enterprise-facing cloud and technology solutions.

A distinctive feature of JD.com's business model is its integrated logistics and fulfillment network.

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