Stock Traders Buy High Volume of Put Options on Rithm Capital (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) saw some unusual options trading on Friday. Investors acquired 9,946 put options on the company. This is an increase of 134% compared to the typical daily volume of 4,247 put options.

Rithm Capital Stock Performance

Shares of RITM stock opened at $8.73 on Friday. The firm has a market capitalization of $4.85 billion, a price-to-earnings ratio of 8.40 and a beta of 1.21. The stock has a fifty day moving average of $10.58 and a 200 day moving average of $11.05. Rithm Capital has a 52 week low of $8.43 and a 52 week high of $12.74. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20.

Rithm Capital (NYSE:RITM) last issued its quarterly earnings data on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.19. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. The business had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.24 billion. As a group, research analysts expect that Rithm Capital will post 1.93 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on RITM. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. Piper Sandler restated an “overweight” rating and issued a $15.00 price objective (down from $15.50) on shares of Rithm Capital in a report on Wednesday, February 4th. Wedbush began coverage on shares of Rithm Capital in a research note on Monday, December 15th. They issued an “outperform” rating and a $14.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a report on Monday, December 29th. Finally, UBS Group set a $15.00 price target on shares of Rithm Capital in a research report on Friday, February 6th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.50.

Hedge Funds Weigh In On Rithm Capital

A number of institutional investors have recently bought and sold shares of RITM. CoreCap Advisors LLC lifted its holdings in Rithm Capital by 99.2% in the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock worth $25,000 after buying an additional 1,143 shares during the period. Los Angeles Capital Management LLC bought a new position in shares of Rithm Capital in the 4th quarter worth approximately $26,000. Bessemer Group Inc. lifted its stake in shares of Rithm Capital by 658.9% in the 3rd quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock valued at $30,000 after purchasing an additional 2,306 shares during the period. Atlantic Union Bankshares Corp purchased a new position in shares of Rithm Capital in the 3rd quarter valued at approximately $31,000. Finally, FNY Investment Advisers LLC bought a new stake in shares of Rithm Capital during the fourth quarter valued at approximately $31,000. 44.92% of the stock is owned by institutional investors.

About Rithm Capital

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.