Stock Traders Purchase High Volume of Rithm Capital Put Options (NYSE:RITM)

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

Analysts Set New Price Targets

RITM has been the subject of a number of research analyst reports. Piper Sandler restated an “overweight” rating and set a $15.00 price objective (down from $15.50) on shares of Rithm Capital in a report on Wednesday, February 4th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a report on Monday, December 29th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a research note on Thursday, December 18th. UBS Group set a $15.00 price target on shares of Rithm Capital in a research note on Friday, February 6th. Finally, Wedbush assumed coverage on shares of Rithm Capital in a report on Monday, December 15th. They issued an “outperform” rating and a $14.00 price objective for the company. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $14.50.

Rithm Capital Price Performance

Rithm Capital stock traded down $0.58 during mid-day trading on Friday, hitting $8.46. 8,880,460 shares of the company traded hands, compared to its average volume of 10,193,187. The stock has a fifty day moving average price of $10.63 and a 200-day moving average price of $11.08. The stock has a market cap of $4.70 billion, a price-to-earnings ratio of 8.15 and a beta of 1.21. Rithm Capital has a one year low of $8.46 and a one year high of $12.74. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58.

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its holdings in Rithm Capital by 20.4% in the 1st quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock worth $889,000 after buying an additional 13,166 shares in the last quarter. NewEdge Advisors LLC grew its stake in shares of Rithm Capital by 5.3% in the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock worth $359,000 after acquiring an additional 1,585 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of Rithm Capital by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock worth $17,627,000 after acquiring an additional 662,585 shares during the period. Geneos Wealth Management Inc. grew its stake in shares of Rithm Capital by 14.3% in the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock worth $81,000 after acquiring an additional 881 shares during the period. Finally, Envestnet Asset Management Inc. lifted its position in Rithm Capital by 15.5% during the second quarter. Envestnet Asset Management Inc. now owns 125,012 shares of the real estate investment trust’s stock valued at $1,411,000 after purchasing an additional 16,779 shares during the period. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Rithm Capital Company Profile

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.