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

Rithm Capital Corp. (NYSE:RITM) was the recipient of some unusual options trading on Friday. Traders acquired 3,023 call options on the stock. This is an increase of 52% compared to the average volume of 1,987 call options.

Wall Street Analyst Weigh In

A number of brokerages recently commented on RITM. Piper Sandler lowered their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Compass Point initiated coverage on shares of Rithm Capital in a research note on Monday, June 8th. They set a “buy” rating and a $14.00 target price for the company. UBS Group lowered their price target on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a report on Friday, August 21st. Wall Street Zen raised shares of Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Weiss Ratings upgraded Rithm Capital from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, August 25th. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $13.15.

Rithm Capital Stock Performance

RITM stock traded down $0.12 during midday trading on Friday, hitting $9.38. 1,222,715 shares of the company traded hands, compared to its average volume of 7,712,604. Rithm Capital has a twelve month low of $8.43 and a twelve month high of $12.33. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 2.19. The business has a 50 day simple moving average of $9.83 and a 200-day simple moving average of $9.60. The stock has a market capitalization of $5.24 billion, a price-to-earnings ratio of 15.62, a price-to-earnings-growth ratio of 0.60 and a beta of 1.12.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. As a group, equities research analysts predict that Rithm Capital will post 2.26 earnings per share for the current year.

Rithm Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 10.7%. The ex-dividend date of this dividend is Thursday, October 1st. Rithm Capital’s dividend payout ratio is currently 166.67%.

Rithm Capital News Summary

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Common dividend maintained: Rithm Capital declared a quarterly common-stock dividend of $0.25 per share, payable October 30 to shareholders of record October 1. The payout implies an annualized dividend of $1.00 and a yield of approximately 10.6% at the reported share price, which may support demand from income-oriented investors. Rithm Capital Declares Third Quarter 2026 Common and Preferred Dividends
• Positive Sentiment: Preferred dividends declared: The company also declared scheduled dividends of $0.6264 on one preferred issue, $0.616 on its 7.125% Series B preferred stock, $0.5732 on its 6.375% Series C preferred stock and $0.4375 on another preferred issue. Continued payments signal that Rithm remains committed to its preferred-stock obligations and income distribution policy. Rithm Capital Preferred Dividend
• Positive Sentiment: Asset sale provides liquidity: Rithm sold an Arlington office building for $56.25 million. The transaction could improve liquidity and demonstrate active portfolio management, although the company did not disclose the gain or use of proceeds in the provided report. Rithm Capital Sells Arlington Office Building
• Neutral Sentiment: Investor-relations leadership change: Ann DeVries was appointed head of investor relations. The move may improve communication with shareholders and analysts, but it has no immediate impact on earnings or cash flow. Rithm Capital Appoints Ann DeVries
• Neutral Sentiment: Valuation viewed as reasonable: A recent analysis said RITM’s share price appears reasonable relative to its earnings despite weaker short-term performance. Analysts remain broadly positive, but bullish recommendations alone may provide limited support unless operating results improve. Rithm Capital Stock Looks Reasonable Relative to Earnings

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of Rithm Capital stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $10.18, for a total transaction of $147,813.60. Following the transaction, the director owned 82,259 shares of the company’s stock, valued at $837,396.62. The trade was a 15.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.57% of the company’s stock.

Hedge Funds Weigh In On Rithm Capital

Institutional investors and hedge funds have recently bought and sold shares of the stock. Fort Sheridan Advisors LLC lifted its position in Rithm Capital by 0.3% during the fourth quarter. Fort Sheridan Advisors LLC now owns 367,164 shares of the real estate investment trust’s stock valued at $4,002,000 after purchasing an additional 1,000 shares during the period. Arizona State Retirement System raised its stake in Rithm Capital by 0.7% during the 2nd quarter. Arizona State Retirement System now owns 153,387 shares of the real estate investment trust’s stock worth $1,440,000 after acquiring an additional 1,016 shares during the period. Essex Financial Services Inc. lifted its holdings in Rithm Capital by 5.5% during the fourth quarter. Essex Financial Services Inc. now owns 19,699 shares of the real estate investment trust’s stock valued at $215,000 after purchasing an additional 1,021 shares in the last quarter. Prospera Financial Services Inc boosted its position in shares of Rithm Capital by 5.8% in the fourth quarter. Prospera Financial Services Inc now owns 22,323 shares of the real estate investment trust’s stock worth $243,000 after purchasing an additional 1,215 shares during the period. Finally, Apollon Wealth Management LLC grew its position in shares of Rithm Capital by 2.3% during the first quarter. Apollon Wealth Management LLC now owns 55,606 shares of the real estate investment trust’s stock worth $527,000 after purchasing an additional 1,273 shares in the last quarter. Institutional investors own 44.92% of the company’s stock.

Rithm Capital Company Profile

Rithm Capital Corporation (NYSE:RITM) is a real estate investment trust that focuses on investments and operating businesses tied to the residential mortgage and real estate markets. The company seeks to generate income from mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other related assets.

Rithm also owns and operates businesses involved in mortgage origination, servicing and related financial services. Its platform includes Newrez, a mortgage company that provides loan origination, servicing and associated services to homeowners and borrowers in the United States.