Traders Buy Large Volume of Call Options on Rithm Capital (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) was the target of some unusual options trading activity on Thursday. Traders acquired 11,613 call options on the company. This is an increase of approximately 398% compared to the average volume of 2,330 call options.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RITM. Charles Schwab Investment Management Inc. increased its stake in shares of Rithm Capital by 7.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 5,364,962 shares of the real estate investment trust’s stock valued at $60,892,000 after buying an additional 366,600 shares during the period. JPMorgan Chase & Co. raised its stake in Rithm Capital by 119.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 4,608,008 shares of the real estate investment trust’s stock worth $52,301,000 after buying an additional 2,504,529 shares during the period. Van ECK Associates Corp raised its stake in Rithm Capital by 20.7% during the 3rd quarter. Van ECK Associates Corp now owns 2,004,057 shares of the real estate investment trust’s stock worth $21,163,000 after buying an additional 343,678 shares during the period. Neo Ivy Capital Management bought a new position in Rithm Capital during the third quarter worth about $1,476,000. Finally, Waterfall Asset Management LLC bought a new stake in shares of Rithm Capital in the second quarter worth about $2,209,000. Institutional investors own 44.92% of the company’s stock.

Rithm Capital Trading Up 0.7 %

Shares of RITM opened at $11.34 on Friday. The stock has a fifty day moving average price of $10.98 and a two-hundred day moving average price of $11.10. The company has a debt-to-equity ratio of 1.63, a quick ratio of 1.35 and a current ratio of 1.35. The company has a market cap of $5.89 billion, a price-to-earnings ratio of 11.45 and a beta of 1.79. Rithm Capital has a 52-week low of $9.97 and a 52-week high of $12.02.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, October 29th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, beating 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 business had revenue of $619.51 million during the quarter, compared to analysts’ expectations of $1.11 billion. During the same period in the previous year, the business posted $0.58 earnings per share. Analysts predict that Rithm Capital will post 1.95 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Tuesday, December 31st will be paid a dividend of $0.25 per share. The ex-dividend date is Tuesday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 8.82%. Rithm Capital’s dividend payout ratio (DPR) is currently 101.01%.

Analyst Ratings Changes

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

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.