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

Key Points

• Rithm Capital Corp. experienced a significant increase in options trading, with 5,450 call options purchased—up approximately 149% from the typical daily volume.
• Institutional investors have notably increased their stakes, with Wealth Enhancement Advisory Services LLC raising its ownership by 830.3% in the last quarter.
• The company announced a quarterly dividend of $0.25 per share, providing an annualized yield of 9.0% as of October 1st.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) saw unusually large options trading on Wednesday. Stock investors purchased 5,450 call options on the stock. This is an increase of approximately 149% compared to the typical daily volume of 2,189 call options.

Institutional Investors Weigh In On Rithm Capital

A number of institutional investors have recently modified their holdings of RITM. Wealth Enhancement Advisory Services LLC raised its stake in shares of Rithm Capital by 830.3% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 168,999 shares of the real estate investment trust's stock valued at $1,830,000 after purchasing an additional 150,832 shares in the last quarter. California State Teachers Retirement System raised its stake in shares of Rithm Capital by 5.3% in the 4th quarter. California State Teachers Retirement System now owns 486,434 shares of the real estate investment trust's stock valued at $5,268,000 after purchasing an additional 24,542 shares in the last quarter. Versant Capital Management Inc acquired a new stake in shares of Rithm Capital in the 1st quarter valued at about $98,000. GAMMA Investing LLC raised its stake in shares of Rithm Capital by 1,268.2% in the 1st quarter. GAMMA Investing LLC now owns 53,139 shares of the real estate investment trust's stock valued at $608,000 after purchasing an additional 49,255 shares in the last quarter. Finally, Bank & Trust Co raised its stake in shares of Rithm Capital by 1,678.6% in the 1st quarter. Bank & Trust Co now owns 11,739 shares of the real estate investment trust's stock valued at $134,000 after purchasing an additional 11,079 shares in the last quarter. Institutional investors and hedge funds own 44.92% of the company's stock.

Analyst Ratings Changes

RITM has been the subject of several research reports. UBS Group upped their price target on shares of Rithm Capital from $14.00 to $16.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. Keefe, Bruyette & Woods boosted their price objective on shares of Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a research note on Tuesday, July 29th. BTIG Research reissued a "buy" rating and set a $16.00 price objective on shares of Rithm Capital in a research note on Wednesday, September 17th. Royal Bank Of Canada upped their price target on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Finally, Wedbush reaffirmed an "outperform" rating and set a $14.00 price target on shares of Rithm Capital in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $14.25.

Rithm Capital Stock Down 0.1%

NYSE:RITM traded down $0.02 on Wednesday, reaching $11.13. The stock had a trading volume of 1,657,688 shares, compared to its average volume of 4,714,316. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 1.63. The company has a 50-day moving average of $12.22 and a 200 day moving average of $11.55. The stock has a market cap of $5.90 billion, a P/E ratio of 8.56 and a beta of 1.30. Rithm Capital has a 12-month low of $9.13 and a 12-month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its quarterly earnings data on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share for the quarter, beating analysts' consensus estimates of $0.51 by $0.03. The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.18 billion. Rithm Capital had a net margin of 16.72% and a return on equity of 18.89%. On average, research analysts predict that Rithm Capital will post 1.93 earnings per share for the current year.

Rithm Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Wednesday, October 1st will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 9.0%. The ex-dividend date of this dividend is Wednesday, October 1st. Rithm Capital's dividend payout ratio is presently 76.92%.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.

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