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

First Internet Bancorp (NASDAQ:INBK) was the target of some unusual options trading on Friday. Investors purchased 4,968 call options on the stock. This represents an increase of 22,482% compared to the typical daily volume of 22 call options.

First Internet Bancorp Stock Performance

NASDAQ:INBK opened at $29.46 on Friday. First Internet Bancorp has a 12 month low of $17.05 and a 12 month high of $30.05. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.88 and a quick ratio of 0.87. The firm has a market capitalization of $256.89 million, a PE ratio of -8.18 and a beta of 0.83. The business’s fifty day moving average price is $26.10 and its 200 day moving average price is $23.35.

First Internet Bancorp (NASDAQ:INBK) last announced its quarterly earnings results on Thursday, July 30th. The bank reported $0.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.12. The company had revenue of $41.12 million during the quarter, compared to the consensus estimate of $43.83 million. First Internet Bancorp had a negative return on equity of 0.55% and a negative net margin of 9.01%.First Internet Bancorp has set its FY 2026 guidance at 2.350-2.450 EPS. On average, sell-side analysts anticipate that First Internet Bancorp will post 1.98 earnings per share for the current fiscal year.

First Internet Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, June 30th. First Internet Bancorp’s dividend payout ratio (DPR) is -6.23%.

Trending Headlines about First Internet Bancorp

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

• Positive Sentiment: Quarterly earnings significantly exceeded expectations. First Internet Bancorp reported second-quarter net income of $2.4 million, or $0.27 per diluted share, compared with $0.02 a year earlier and ahead of the roughly $0.15 consensus estimate. Revenue increased 23% year over year to $41.1 million, driven by higher net interest and noninterest income. First Internet Bancorp Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year guidance was raised above Wall Street expectations. Management now expects 2026 diluted EPS of $2.35 to $2.45, compared with the prior consensus estimate of $2.10, providing a meaningful catalyst for the stock.
• Positive Sentiment: Credit quality improved. The provision for credit losses declined to $13.4 million from $16.3 million in the first quarter, while nonperforming loans improved to 1.58% of total loans from 1.63%. Loan balances also grew about 1% sequentially. First Internet Bancorp Q2 net income rises to $2.4 million
• Positive Sentiment: Analyst sentiment improved. Benchmark raised its price target from $33 to $35 and maintained a “buy” rating. Piper Sandler also increased its target from $26 to $29.50, though it retained a neutral rating. Analyst price target updates
• Neutral Sentiment: Unusually heavy options activity included purchases of 4,968 call contracts versus typical volume of about 22. This signals increased speculative interest but does not guarantee further gains.
• Negative Sentiment: Revenue of $41.1 million was below the $43.8 million consensus estimate, deposits declined by $150.3 million, or 3%, sequentially, and profitability metrics remain pressured, including a negative reported net margin and return on equity.

Hedge Funds Weigh In On First Internet Bancorp

A number of institutional investors and hedge funds have recently added to or reduced their stakes in INBK. Aegis Financial Corp purchased a new position in First Internet Bancorp in the fourth quarter valued at approximately $5,224,000. Patriot Financial Partners GP II L.P. purchased a new stake in shares of First Internet Bancorp during the 3rd quarter worth approximately $4,696,000. Heartland Advisors Inc. lifted its position in shares of First Internet Bancorp by 33.4% during the 1st quarter. Heartland Advisors Inc. now owns 384,900 shares of the bank’s stock worth $7,844,000 after buying an additional 96,305 shares during the last quarter. Simcoe Capital LLC acquired a new position in shares of First Internet Bancorp in the 4th quarter valued at $1,935,000. Finally, CSM Advisors LLC boosted its holdings in shares of First Internet Bancorp by 35.9% in the 4th quarter. CSM Advisors LLC now owns 191,854 shares of the bank’s stock valued at $4,005,000 after buying an additional 50,695 shares in the last quarter. 65.46% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Wall Street Zen raised First Internet Bancorp from a “hold” rating to a “buy” rating in a research note on Saturday, June 6th. Keefe, Bruyette & Woods increased their price target on First Internet Bancorp from $23.00 to $24.00 and gave the company a “market perform” rating in a research report on Friday, May 1st. Benchmark boosted their price objective on First Internet Bancorp from $33.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday. Weiss Ratings upgraded shares of First Internet Bancorp from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 8th. Finally, Piper Sandler raised their target price on shares of First Internet Bancorp from $26.00 to $29.50 and gave the company a “neutral” rating in a report on Friday. 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. Based on data from MarketBeat, First Internet Bancorp currently has an average rating of “Hold” and a consensus price target of $29.38.

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).