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

Rithm Capital Corp. (NYSE:RITM) was the recipient of unusually large options trading on Friday. Stock traders purchased 9,946 put options on the company. This represents an increase of 134% compared to the average volume of 4,247 put options.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Wedbush initiated coverage on Rithm Capital in a research report on Monday, December 15th. They issued an “outperform” rating and a $14.00 target price on the stock. UBS Group set a $15.00 target price on Rithm Capital in a research note on Friday, February 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Rithm Capital in a research report on Monday, December 29th. Wall Street Zen raised shares of Rithm Capital from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $15.00 price target (down from $15.50) on shares of Rithm Capital in a research note on Wednesday, February 4th. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Rithm Capital has an average rating of “Moderate Buy” and a consensus price target of $14.50.

Rithm Capital Stock Down 6.4%

RITM stock traded down $0.58 during trading on Friday, hitting $8.46. 8,880,460 shares of the company’s stock traded hands, compared to its average volume of 10,193,187. The firm has a market capitalization of $4.70 billion, a P/E ratio of 8.15 and a beta of 1.21. Rithm Capital has a 1 year low of $8.46 and a 1 year high of $12.74. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. The business has a fifty day simple moving average of $10.63 and a two-hundred day simple moving average of $11.08.

Rithm Capital (NYSE:RITM) last posted its earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.19. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%.The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.24 billion. Sell-side analysts anticipate that Rithm Capital will post 1.93 EPS for the current year.

Institutional Investors Weigh In On Rithm Capital

A number of institutional investors have recently added to or reduced their stakes in RITM. AQR Capital Management LLC grew its stake in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock valued at $889,000 after purchasing an additional 13,166 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Rithm Capital by 5.3% during the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock valued at $359,000 after buying an additional 1,585 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Rithm Capital by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock valued at $17,627,000 after buying an additional 662,585 shares in the last quarter. Geneos Wealth Management Inc. grew its position in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock worth $81,000 after buying an additional 881 shares during the last quarter. Finally, Envestnet Asset Management Inc. raised its stake in shares of Rithm Capital by 15.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 125,012 shares of the real estate investment trust’s stock worth $1,411,000 after acquiring an additional 16,779 shares in the last quarter. Institutional investors own 44.92% of the company’s stock.

About Rithm Capital

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.