Rithm Capital Target of Unusually High Options Trading (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) was the target of unusually large options trading on Thursday. Investors purchased 11,613 call options on the stock. This represents an increase of 398% compared to the average daily volume of 2,330 call options.

Rithm Capital Stock Up 0.7 %

Shares of Rithm Capital stock opened at $11.34 on Friday. Rithm Capital has a 12-month low of $9.97 and a 12-month high of $12.02. The stock has a market capitalization of $5.89 billion, a P/E ratio of 11.45 and a beta of 1.79. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.63. The stock has a 50 day moving average price of $10.98 and a two-hundred day moving average price of $11.10.

Rithm Capital (NYSE:RITM) last posted its quarterly earnings data on Tuesday, October 29th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.12. The business had revenue of $619.51 million during the quarter, compared to the consensus estimate of $1.11 billion. Rithm Capital had a net margin of 14.99% and a return on equity of 17.54%. During the same period in the prior year, the firm earned $0.58 EPS. Equities analysts expect that Rithm Capital will post 1.95 earnings per share for the current year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Tuesday, December 31st will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 8.82%. The ex-dividend date of this dividend is Tuesday, December 31st. Rithm Capital’s dividend payout ratio (DPR) is currently 101.01%.

Hedge Funds Weigh In On Rithm Capital

Several large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Rithm Capital by 154.4% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,513 shares of the real estate investment trust’s stock worth $27,000 after purchasing an additional 1,525 shares during the period. Truvestments Capital LLC bought a new position in Rithm Capital during the third quarter valued at about $43,000. Wilmington Savings Fund Society FSB acquired a new position in Rithm Capital in the 3rd quarter valued at approximately $43,000. Householder Group Estate & Retirement Specialist LLC grew its holdings in shares of Rithm Capital by 86.7% during the 4th quarter. Householder Group Estate & Retirement Specialist LLC now owns 4,439 shares of the real estate investment trust’s stock worth $48,000 after purchasing an additional 2,062 shares in the last quarter. Finally, Godsey & Gibb Inc. bought a new stake in shares of Rithm Capital during the third quarter valued at approximately $51,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on RITM. Wedbush reissued an “outperform” rating and set a $14.00 price objective on shares of Rithm Capital in a research report on Thursday, November 7th. B. Riley raised Rithm Capital to a “strong-buy” rating in a research note on Tuesday, January 7th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $13.00 price objective on shares of Rithm Capital in a research report on Thursday, November 21st. Finally, Keefe, Bruyette & Woods increased their price target on shares of Rithm Capital from $13.00 to $13.50 and gave the stock an “outperform” rating in a research note on Tuesday, December 3rd. One research analyst has rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $12.94.

Rithm Capital Company Profile

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.