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

Rithm Capital Corp. (NYSE:RITM) was the target of some unusual options trading on Tuesday. Investors acquired 44,167 call options on the company. This represents an increase of approximately 1,579% compared to the typical volume of 2,631 call options.

Rithm Capital Trading Down 0.1%

Shares of RITM stock traded down $0.01 during trading hours on Tuesday, hitting $11.06. 3,741,044 shares of the company were exchanged, compared to its average volume of 5,064,412. The firm has a fifty day moving average of $11.10 and a 200 day moving average of $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 has a 1 year low of $9.13 and a 1 year high of $12.74. The firm has a market cap of $6.13 billion, a PE ratio of 7.63 and a beta of 1.22.

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

Rithm Capital Announces Dividend

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

Insider Buying and Selling at Rithm Capital

In related news, insider David Zeiden sold 19,285 shares of the business’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $11.11, for a total value of $214,256.35. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Michael Nierenberg sold 301,548 shares of the stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $11.00, for a total transaction of $3,317,028.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.44% of the company’s stock.

Institutional Trading of Rithm Capital

Institutional investors have recently modified their holdings of the company. Cullen Frost Bankers Inc. acquired a new stake in Rithm Capital during the 2nd quarter worth approximately $30,000. Bessemer Group Inc. grew its stake in Rithm Capital by 658.9% during the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock worth $30,000 after buying an additional 2,306 shares during the period. Atlantic Union Bankshares Corp acquired a new stake in shares of Rithm Capital in the third quarter worth $31,000. Mather Group LLC. purchased a new position in shares of Rithm Capital in the 3rd quarter valued at $33,000. Finally, Optimum Investment Advisors lifted its holdings in shares of Rithm Capital by 200.0% during the 3rd quarter. Optimum Investment Advisors now owns 3,000 shares of the real estate investment trust’s stock valued at $34,000 after acquiring an additional 2,000 shares in the last quarter. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on RITM shares. Jones Trading reaffirmed a “buy” rating and issued a $13.50 target price on shares of Rithm Capital in a research note on Thursday, October 30th. BTIG Research reaffirmed a “buy” rating and set a $16.00 price objective on shares of Rithm Capital in a research note on Wednesday, September 17th. UBS Group boosted their target price on shares of Rithm Capital from $14.00 to $16.00 and gave the company a “buy” rating in a research note on Wednesday, September 3rd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a research note on Monday. Finally, Piper Sandler reissued an “overweight” rating and issued a $15.50 price objective on shares of Rithm Capital in a research report on Monday, December 22nd. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus 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.