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

Rithm Capital Corp. (NYSE:RITM) saw some unusual options trading activity on Wednesday. Traders bought 5,450 call options on the stock. This is an increase of 149% compared to the typical daily volume of 2,189 call options.

Rithm Capital Stock Performance

Rithm Capital stock opened at $11.23 on Thursday. The firm has a 50 day simple moving average of $12.20 and a 200-day simple moving average of $11.55. Rithm Capital has a 1-year low of $9.13 and a 1-year high of $12.74. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. The stock has a market cap of $5.95 billion, a price-to-earnings ratio of 8.63 and a beta of 1.31.

Rithm Capital (NYSE:RITM) last posted its quarterly earnings results on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.03. Rithm Capital had a net margin of 16.72% and a return on equity of 18.89%. The business had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.18 billion. On average, analysts expect that Rithm Capital will post 1.93 EPS for the current year.

Rithm Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Wednesday, October 1st will be paid a $0.25 dividend. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 8.9%. Rithm Capital’s dividend payout ratio is 76.92%.

Institutional Trading of Rithm Capital

Several hedge funds have recently made changes to their positions in RITM. SouthState Corp purchased a new stake in shares of Rithm Capital in the 1st quarter valued at approximately $25,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Rithm Capital in the 2nd quarter valued at approximately $30,000. Fourth Dimension Wealth LLC boosted its position in shares of Rithm Capital by 50.0% during the 1st quarter. Fourth Dimension Wealth LLC now owns 3,000 shares of the real estate investment trust’s stock worth $34,000 after purchasing an additional 1,000 shares during the period. Ameritas Advisory Services LLC purchased a new position in shares of Rithm Capital during the 2nd quarter worth approximately $43,000. Finally, SVB Wealth LLC purchased a new position in shares of Rithm Capital during the 1st quarter worth approximately $57,000. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Royal Bank Of Canada increased their target price on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an “outperform” rating in a research note on Friday, August 1st. BTIG Research reissued a “buy” rating and set a $16.00 target price on shares of Rithm Capital in a research note on Wednesday, September 17th. Keefe, Bruyette & Woods increased their target price on shares of Rithm Capital from $13.50 to $14.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 29th. Wedbush reissued an “outperform” rating and set a $14.00 target price on shares of Rithm Capital in a research note on Wednesday, August 6th. Finally, Jones Trading increased their target price on shares of Rithm Capital from $12.50 to $13.50 and gave the stock a “buy” rating in a research note on Tuesday, July 29th. One research analyst has rated the stock with a Strong Buy rating and eight have issued a Buy rating to the stock. According to MarketBeat, Rithm Capital currently has an average rating of “Buy” and a consensus target price of $14.25.

About Rithm Capital

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.