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New Residential Investment Target of Unusually High Options Trading (NYSE:NRZ)

Saturday, November 21, 2020 | MarketBeat

New Residential Investment Corp. (NYSE:NRZ) was the target of unusually large options trading activity on Friday. Stock investors bought 45,787 call options on the stock. This represents an increase of 570% compared to the typical volume of 6,833 call options.

Shares of NYSE NRZ opened at $9.48 on Friday. The firm's 50-day moving average price is $8.16 and its 200-day moving average price is $7.65. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.12. The company has a market cap of $3.94 billion, a PE ratio of -2.98 and a beta of 1.81. New Residential Investment has a 52-week low of $2.91 and a 52-week high of $17.66.

New Residential Investment (NYSE:NRZ) last announced its quarterly earnings results on Saturday, October 31st. The real estate investment trust reported $0.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.37 by ($0.06). The company had revenue of $685.00 million for the quarter, compared to analysts' expectations of $623.19 million. New Residential Investment had a negative net margin of 96.73% and a positive return on equity of 14.58%. The business's revenue was up 9.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.50 EPS. As a group, equities research analysts anticipate that New Residential Investment will post 1.46 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Monday, October 5th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 6.33%. The ex-dividend date was Friday, October 2nd. This is an increase from New Residential Investment's previous quarterly dividend of $0.10. New Residential Investment's dividend payout ratio (DPR) is presently 27.65%.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Metropolitan Life Insurance Co NY boosted its holdings in shares of New Residential Investment by 9.3% in the first quarter. Metropolitan Life Insurance Co NY now owns 9,747 shares of the real estate investment trust's stock worth $164,000 after buying an additional 828 shares during the last quarter. FMR LLC boosted its holdings in shares of New Residential Investment by 62.2% in the first quarter. FMR LLC now owns 779,914 shares of the real estate investment trust's stock worth $13,189,000 after buying an additional 299,097 shares during the last quarter. Amundi Pioneer Asset Management Inc. boosted its holdings in shares of New Residential Investment by 50.8% in the first quarter. Amundi Pioneer Asset Management Inc. now owns 250,386 shares of the real estate investment trust's stock worth $4,234,000 after buying an additional 84,355 shares during the last quarter. State Street Corp boosted its holdings in shares of New Residential Investment by 10.2% in the first quarter. State Street Corp now owns 6,388,327 shares of the real estate investment trust's stock worth $32,006,000 after buying an additional 591,625 shares during the last quarter. Finally, Valeo Financial Advisors LLC purchased a new position in shares of New Residential Investment in the second quarter worth approximately $130,000. 45.59% of the stock is currently owned by hedge funds and other institutional investors.

NRZ has been the subject of several research reports. Credit Suisse Group increased their price target on shares of New Residential Investment from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Monday, October 19th. Wolfe Research initiated coverage on shares of New Residential Investment in a research note on Friday, November 6th. They issued an "outperform" rating for the company. Zacks Investment Research lowered shares of New Residential Investment from a "buy" rating to a "hold" rating in a research note on Tuesday, August 4th. ValuEngine upgraded shares of New Residential Investment from a "sell" rating to a "hold" rating in a research note on Saturday. Finally, Raymond James increased their price target on shares of New Residential Investment from $8.50 to $10.50 and gave the stock an "outperform" rating in a research note on Thursday, August 20th. Two analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The company currently has a consensus rating of "Buy" and an average target price of $11.00.

About New Residential Investment

New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs.

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