Investors Purchase Large Volume of Rithm Capital Call Options (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) was the recipient of unusually large options trading on Tuesday. Traders acquired 13,580 call options on the stock. This represents an increase of approximately 541% compared to the average volume of 2,119 call options.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Citigroup reaffirmed an “outperform” rating on shares of Rithm Capital in a research report on Wednesday, May 20th. Piper Sandler cut their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Keefe, Bruyette & Woods cut their price objective on shares of Rithm Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a report on Friday, May 1st. Weiss Ratings upgraded shares of Rithm Capital from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. Finally, Citizens Jmp raised their target price on shares of Rithm Capital from $12.50 to $13.50 and gave the stock a “market outperform” rating in a report on Wednesday, May 20th. Ten analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $13.20.

Rithm Capital Price Performance

Rithm Capital stock traded up $0.18 during trading hours on Tuesday, reaching $10.29. 1,217,671 shares of the stock were exchanged, compared to its average volume of 8,313,320. The company has a market cap of $5.75 billion, a P/E ratio of 17.16 and a beta of 1.14. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 2.19. Rithm Capital has a twelve month low of $8.43 and a twelve month high of $12.74. The stock has a 50 day moving average of $9.37 and a two-hundred day moving average of $9.77.

Rithm Capital (NYSE:RITM) last issued its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. Equities analysts expect that Rithm Capital will post 2.22 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 2nd were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 9.7%. The ex-dividend date of this dividend was Thursday, July 2nd. Rithm Capital’s dividend payout ratio (DPR) is 166.67%.

Insider Buying and Selling at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the completion of the sale, the director owned 44,248 shares of the company’s stock, valued at approximately $409,294. This trade represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Cetera Investment Advisers lifted its holdings in Rithm Capital by 26.9% in the first quarter. Cetera Investment Advisers now owns 1,447,552 shares of the real estate investment trust’s stock valued at $13,723,000 after buying an additional 306,615 shares during the period. WINTON GROUP Ltd bought a new stake in Rithm Capital during the fourth quarter valued at $2,007,000. Family Manage LLC grew its holdings in Rithm Capital by 62.1% during the 1st quarter. Family Manage LLC now owns 487,557 shares of the real estate investment trust’s stock worth $4,622,000 after acquiring an additional 186,816 shares during the period. Massachusetts Financial Services Co. MA acquired a new stake in Rithm Capital during the 4th quarter worth about $1,492,000. Finally, UBS Group AG raised its position in shares of Rithm Capital by 4.0% in the 4th quarter. UBS Group AG now owns 3,869,113 shares of the real estate investment trust’s stock worth $42,173,000 after acquiring an additional 150,291 shares in the last quarter. 44.92% of the stock is currently owned by institutional investors and hedge funds.

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.