Investors Buy High Volume of Call Options on Mr. Cooper Group (NASDAQ:COOP)

Key Points

• Mr. Cooper Group saw a significant surge in options trading, with investors purchasing 10,613 call options, marking an increase of approximately 3,637% compared to the average daily volume.
• CEO Jesse K. Bray sold 30,000 shares of the company on August 1 for about $5.24 million, reducing his ownership stake by 4.33% while still holding shares valued at over $115 million.
• Institutional investors own 89.82% of Mr. Cooper Group's stock, with several firms increasing their positions or acquiring new stakes in the company during the recent quarter.

Mr. Cooper Group Inc (NASDAQ:COOP - Get Free Report) was the target of unusually large options trading on Wednesday. Stock investors purchased 10,613 call options on the stock. Thisisanincreaseof3,637% compared to the typical daily volume of 284 call options.

Wall Street Analysts Forecast Growth

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

Mr. Cooper Group Stock Performance

Mr. Cooper Group stock remained flat at $193.00 during mid-day trading on Tuesday. The company's stock had a trading volume of 612,092 shares, compared to its average volume of 889,522. The company has a 50 day simple moving average of $165.14 and a 200 day simple moving average of $134.22. The company has a market capitalization of $12.35 billion, a PE ratio of 22.08 and a beta of 0.98. Mr. Cooper Group has a 12 month low of $84.15 and a 12 month high of $203.42.

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

Insider Activity

In other news, CEO Jesse K. Bray sold 30,000 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $174.72, for a total transaction of $5,241,600.00. Following the sale, the chief executive officer directly owned 663,187 shares of the company's stock, valued at $115,872,032.64. This represents a 4.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Mr. Cooper Group

Hedge funds have recently bought and sold shares of the business. Bessemer Group Inc. grew its position in shares of Mr. Cooper Group by 3.6% during the 2nd quarter. Bessemer Group Inc. now owns 1,831 shares of the company's stock worth $273,000 after buying an additional 63 shares in the last quarter. Archer Investment Corp grew its position in shares of Mr. Cooper Group by 4.9% during the 2nd quarter. Archer Investment Corp now owns 1,495 shares of the company's stock worth $223,000 after buying an additional 70 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Mr. Cooper Group by 5.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,668 shares of the company's stock worth $249,000 after buying an additional 82 shares in the last quarter. Allworth Financial LP grew its position in shares of Mr. Cooper Group by 24.5% during the 1st quarter. Allworth Financial LP now owns 442 shares of the company's stock worth $51,000 after buying an additional 87 shares in the last quarter. Finally, AlphaQuest LLC grew its position in shares of Mr. Cooper Group by 88.0% during the 2nd quarter. AlphaQuest LLC now owns 188 shares of the company's stock worth $28,000 after buying an additional 88 shares in the last quarter. Institutional investors 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.