Rithm Capital Sees Unusually High Options Volume (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) saw some unusual options trading activity on Tuesday. Investors acquired 44,167 call options on the stock. This is an increase of approximately 1,579% compared to the average daily volume of 2,631 call options.

Insider Buying and Selling at Rithm Capital

In other Rithm Capital news, CEO Michael Nierenberg sold 301,548 shares of the stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $11.00, for a total transaction of $3,317,028.00. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider David Zeiden sold 19,285 shares of Rithm Capital stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $11.11, for a total value of $214,256.35. The SEC filing for this sale provides additional information. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Rithm Capital

Several hedge funds and other institutional investors have recently bought and sold shares of RITM. State Street Corp lifted its stake in shares of Rithm Capital by 11.5% during the 2nd quarter. State Street Corp now owns 10,178,853 shares of the real estate investment trust’s stock worth $117,426,000 after purchasing an additional 1,052,130 shares during the last quarter. Kingstone Capital Partners Texas LLC purchased a new position in shares of Rithm Capital in the 2nd quarter worth approximately $96,027,000. Geode Capital Management LLC raised its stake in shares of Rithm Capital by 1.1% during the 2nd quarter. Geode Capital Management LLC now owns 8,991,146 shares of the real estate investment trust’s stock worth $101,528,000 after acquiring an additional 98,307 shares in the last quarter. Qube Research & Technologies Ltd lifted its position in Rithm Capital by 80.7% during the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock valued at $89,878,000 after acquiring an additional 3,524,330 shares during the last quarter. Finally, Norges Bank acquired a new stake in Rithm Capital in the second quarter valued at approximately $72,762,000. Institutional investors own 44.92% of the company’s stock.

Rithm Capital Trading Down 0.1%

RITM opened at $11.06 on Wednesday. Rithm Capital has a 52 week low of $9.13 and a 52 week high of $12.74. The company has a market capitalization of $6.13 billion, a P/E ratio of 7.63 and a beta of 1.22. The stock’s fifty day moving average is $11.11 and its two-hundred day moving average is $11.57. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 1.52.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings results on Thursday, October 30th. The real estate investment trust reported $0.54 EPS for the quarter, meeting the consensus estimate of $0.54. Rithm Capital had a return on equity of 18.82% and a net margin of 17.08%.The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Analysts forecast that Rithm Capital will post 1.93 earnings per share for the current year.

Rithm Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be paid a dividend of $0.25 per share. The ex-dividend date is Wednesday, December 31st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.0%. Rithm Capital’s dividend payout ratio (DPR) is currently 68.97%.

Analysts Set New Price Targets

RITM has been the subject of a number of analyst reports. UBS Group increased their price target on Rithm Capital from $14.00 to $16.00 and gave the stock a “buy” rating in a research note on Wednesday, September 3rd. Weiss Ratings restated a “hold (c+)” rating on shares of Rithm Capital in a report on Monday. Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Rithm Capital in a research note on Thursday, December 18th. Wedbush started coverage on shares of Rithm Capital in a research note on Monday, December 15th. They set an “outperform” rating and a $14.00 price objective for the company. Finally, Jones Trading restated a “buy” rating and issued a $13.50 target price on shares of Rithm Capital in a report on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Rithm Capital currently has a consensus rating of “Buy” and an average price target of $14.44.

Rithm Capital Company Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.