Stock Traders Purchase High Volume of Call Options on Rithm Capital (NYSE:RITM)

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

Rithm Capital Price Performance

Shares of NYSE:RITM traded up $0.08 during trading on Thursday, reaching $11.25. The stock had a trading volume of 2,289,039 shares, compared to its average volume of 3,711,777. The stock has a market capitalization of $5.84 billion, a PE ratio of 11.36 and a beta of 1.79. Rithm Capital has a 52 week low of $9.97 and a 52 week high of $12.02. The business’s 50-day moving average price is $10.96 and its 200 day moving average price is $11.10. The company has a debt-to-equity ratio of 1.63, a current ratio of 1.35 and a quick ratio of 1.35.

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

Rithm Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Tuesday, December 31st will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.89%. The ex-dividend date of this dividend is Tuesday, December 31st. Rithm Capital’s dividend payout ratio is currently 101.01%.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. lifted its holdings in shares of Rithm Capital by 119.1% in the third quarter. JPMorgan Chase & Co. now owns 4,608,008 shares of the real estate investment trust’s stock valued at $52,301,000 after purchasing an additional 2,504,529 shares in the last quarter. Azora Capital LP lifted its stake in Rithm Capital by 107.6% in the 3rd quarter. Azora Capital LP now owns 4,383,821 shares of the real estate investment trust’s stock valued at $49,756,000 after acquiring an additional 2,271,671 shares in the last quarter. Soros Fund Management LLC bought a new stake in Rithm Capital in the 3rd quarter valued at approximately $23,835,000. Seven Grand Managers LLC acquired a new position in Rithm Capital during the 3rd quarter worth approximately $11,918,000. Finally, Maven Securities LTD bought a new position in shares of Rithm Capital during the 3rd quarter worth approximately $11,350,000. Institutional investors own 44.92% of the company’s stock.

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.