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

Rithm Capital Corp. (NYSE:RITM – Get Rating) saw some unusual options trading activity on Tuesday. Stock traders purchased 25,220 call options on the company. This represents an increase of 411% compared to the typical daily volume of 4,932 call options.

Rithm Capital Price Performance

Shares of RITM opened at $8.32 on Wednesday. The stock has a market capitalization of $3.94 billion, a P/E ratio of 4.65 and a beta of 1.79. Rithm Capital has a twelve month low of $6.86 and a twelve month high of $11.75. The company has a 50 day moving average of $9.07 and a 200-day moving average of $8.68. The company has a quick ratio of 0.32, a current ratio of 0.32 and a debt-to-equity ratio of 0.09.

Rithm Capital (NYSE:RITM – Get Rating) last issued its quarterly earnings results on Wednesday, February 8th. The real estate investment trust reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.04. The company had revenue of $762.40 million during the quarter, compared to analysts’ expectations of $750.14 million. Rithm Capital had a net margin of 20.19% and a return on equity of 12.04%. During the same period last year, the business earned $0.40 EPS. As a group, equities research analysts forecast that Rithm Capital will post 1.36 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 27th. Stockholders of record on Friday, December 30th were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 12.02%. The ex-dividend date was Thursday, December 29th. Rithm Capital’s payout ratio is presently 55.87%.

Institutional Investors Weigh In On Rithm Capital

Several large investors have recently made changes to their positions in RITM. Bank of America Corp DE acquired a new stake in shares of Rithm Capital in the 4th quarter valued at approximately $65,192,000. LSV Asset Management acquired a new stake in Rithm Capital during the 4th quarter valued at $54,076,000. Geode Capital Management LLC acquired a new stake in Rithm Capital during the 4th quarter valued at $50,728,000. Nan Shan Life Insurance Co. Ltd. acquired a new stake in Rithm Capital during the 4th quarter valued at $47,845,000. Finally, Morgan Stanley acquired a new stake in Rithm Capital during the 4th quarter valued at $38,490,000. Institutional investors and hedge funds own 47.30% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, B. Riley started coverage on shares of Rithm Capital in a research report on Friday, December 16th. They set a “buy” rating and a $12.00 target price on the stock. One analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, Rithm Capital has a consensus rating of “Moderate Buy” and a consensus target price of $10.83.

Rithm Capital Company Profile

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Rithm Capital Corp. is a real estate investment trust, which aims to generate long-term value for investors by investing in mortgage related assets, including operating companies, that offer attractive risk-adjusted returns. It operates through the following segments: Origination, Servicing, MSR Related Investments, Residential Securities, Properties and Loans, Consumer Loans, Mortgage Loans Receivables, and Corporate.