Mr. Cooper Group Target of Unusually Large Options Trading (NASDAQ:COOP)

Key Points

• Mr. Cooper Group experienced a significant surge in options trading, with traders purchasing 10,613 call options, marking a 3,637% increase over the average volume.
• The company reported $3.13 earnings per share for the quarter, below the consensus estimate of $3.28, with revenues of $608 million missing expectations.
• M r. Cooper Group declared a special dividend of $0.01 per share, payable on October 7th, with a record date of September 29th.

Mr. Cooper Group Inc (NASDAQ:COOP - Get Free Report) was the target of some unusual options trading on Wednesday. Traders purchased 10,613 call options on the stock. This is an increase of 3,637% compared to the average volume of 284 call options.

Mr. Cooper Group Stock Down 2.1%

Shares of COOP stock opened at $212.19 on Thursday. The stock has a 50-day simple moving average of $195.06 and a 200 day simple moving average of $152.21. Mr. Cooper Group has a fifty-two week low of $84.68 and a fifty-two week high of $234.73. The stock has a market capitalization of $13.58 billion, a P/E ratio of 24.28 and a beta of 1.08.

Mr. Cooper Group (NASDAQ:COOP - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported $3.13 earnings per share for the quarter, missing the consensus estimate of $3.28 by ($0.15). Mr. Cooper Group had a net margin of 25.38% and a return on equity of 15.66%. The firm had revenue of $608.00 million for the quarter, compared to the consensus estimate of $669.23 million. During the same period in the prior year, the business earned $3.10 EPS. The company's quarterly revenue was up 8.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Mr. Cooper Group will post 13.17 earnings per share for the current year.

Mr. Cooper Group Dividend Announcement

The business also recently declared a special dividend, which will be paid on Tuesday, October 7th. Investors of record on Monday, September 29th will be given a $0.01 dividend. The ex-dividend date is Monday, September 29th. Mr. Cooper Group's dividend payout ratio (DPR) is 22.88%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on COOP. Piper Sandler increased their price objective on shares of Mr. Cooper Group from $143.00 to $158.00 and gave the stock a "neutral" rating in a report on Tuesday, July 1st. Jefferies Financial Group increased their price objective on shares of Mr. Cooper Group from $110.00 to $150.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. Barclays increased their price objective on shares of Mr. Cooper Group from $147.00 to $156.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. Finally, UBS Group set a $176.00 price target on Mr. Cooper Group in a report on Tuesday, August 5th. Four equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $140.38.

Insider Activity

In related news, CEO Jesse K. Bray sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $182.43, for a total transaction of $5,472,900.00. Following the sale, the chief executive officer directly owned 633,187 shares of the company's stock, valued at approximately $115,512,304.41. This represents a 4.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.73% of the company's stock.

Hedge Funds Weigh In On Mr. Cooper Group

A number of hedge funds and other institutional investors have recently modified their holdings of COOP. Norges Bank acquired a new position in shares of Mr. Cooper Group in the 2nd quarter valued at $258,538,000. Third Point LLC acquired a new position in shares of Mr. Cooper Group in the 2nd quarter valued at $138,019,000. Qube Research & Technologies Ltd boosted its position in shares of Mr. Cooper Group by 154.5% in the 2nd quarter. Qube Research & Technologies Ltd now owns 803,131 shares of the company's stock valued at $119,835,000 after purchasing an additional 487,503 shares during the period. Whitebox Advisors LLC acquired a new position in shares of Mr. Cooper Group in the 2nd quarter valued at $72,344,000. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Mr. Cooper Group in the 2nd quarter valued at $61,297,000. Institutional investors and hedge funds own 89.82% of the company's stock.

About Mr. Cooper Group

Mr. Cooper Group Inc, together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned.

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