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

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

Rithm Capital Stock Performance

NYSE RITM traded down $0.01 during trading hours on Tuesday, hitting $11.06. 3,741,044 shares of the stock were exchanged, compared to its average volume of 5,064,412. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 1.52. The company has a market cap of $6.13 billion, a price-to-earnings ratio of 7.63 and a beta of 1.22. Rithm Capital has a 12-month low of $9.13 and a 12-month high of $12.74. The stock has a 50-day moving average of $11.10 and a 200 day moving average of $11.57.

Rithm Capital (NYSE:RITM) last released its earnings results on Thursday, October 30th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.54. The company had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.07 billion. Rithm Capital had a return on equity of 18.82% and a net margin of 17.08%. As a group, equities research analysts forecast that Rithm Capital will post 1.93 earnings per share for the current year.

Rithm Capital Announces Dividend

The business also recently announced 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 annualized dividend and a dividend yield of 9.0%. The ex-dividend date is Wednesday, December 31st. Rithm Capital’s payout ratio is presently 68.97%.

Insider Buying and Selling at Rithm Capital

In other 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 value of $3,317,028.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider David Zeiden sold 19,285 shares of the business’s stock in a transaction on 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. 0.44% of the stock is currently owned by company insiders.

Institutional Trading of Rithm Capital

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

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on RITM shares. Jones Trading restated a “buy” rating and issued a $13.50 price objective on shares of Rithm Capital in a research note on Thursday, October 30th. BTIG Research reissued a “buy” rating and issued a $16.00 target price on shares of Rithm Capital in a research report on Wednesday, September 17th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a research report on Monday. Piper Sandler reissued an “overweight” rating and issued a $15.50 price objective on shares of Rithm Capital in a report on Monday, December 22nd. Finally, Keefe, Bruyette & Woods restated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. One research 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 data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $14.44.

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.