Stock traders buy high volume call options from Rithm Capital (NYSE:RITM)

Rhythm Capital Corp. (NYSE:RITM – Get Rating) was the target of unusual options trading activity on Thursday. Stock traders bought 24,736 call options on the stock. This represents an increase of approximately 445% over the average volume of 4,536 call options.

Rithm share capital down 6.3%

Rithm Capital stock traded down $0.48 at midday Thursday, hitting $7.14. 378,096 shares were traded, against an average volume of 4,328,727. The company’s 50-day moving average price is $9.59 and its 200-day moving average price is $10.11. The stock has a market capitalization of $3.33 billion, a price-earnings ratio of 3.64 and a beta of 1.70. Rithm Capital has a 52-week low of $7.31 and a 52-week high of $11.81. The company has a quick ratio of 0.52, a current ratio of 0.52 and a debt ratio of 0.09.

Rithm Capital (NYSE:RITM – Get Rating) last released its quarterly results on Tuesday, August 2. The real estate investment trust reported EPS of $0.31 for the quarter, beating analyst consensus estimates of $0.29 by $0.02. Rithm Capital had a net margin of 20.51% and a return on equity of 13.69%. During the same period last year, the company posted EPS of $0.31. On average, research analysts expect Rithm Capital to post EPS of 1.24 for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 28. Investors of record on Tuesday, October 4 will receive a dividend of $0.25 per share. This represents an annualized dividend of $1.00 and a dividend yield of 14.01%. The ex-dividend date is Monday, October 3. Rithm Capital’s dividend payout ratio is currently 50.25%.

Institutional investors weigh in on Rithm Capital

Institutional investors have recently increased or reduced their stake in the company. JPMorgan Chase & Co. increased its position in Rithm Capital shares by 0.3% in the 4th quarter. JPMorgan Chase & Co. now owns 696,753 shares of the real estate investment trust worth $7,463,000 after purchasing an additional 2,042 shares during the period. Rhumbline Advisers increased its stake in Rithm Capital shares by 2.2% in the 4th quarter. Rhumbline Advisers now owns 396,975 shares of the real estate investment trust worth $4,252,000 after acquiring 8,469 additional shares in the last quarter. Ensign Peak Advisors Inc bought a new position in shares of Rithm Capital in Q4 for a value of approximately $391,000. Geode Capital Management LLC increased its stake in Rithm Capital shares by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 6,130,295 shares of the real estate investment trust worth $65,655,000 after acquiring an additional 219,821 shares last quarter. Finally, Invesco Ltd. increased its stake in Rithm Capital shares by 167.8% in the 4th quarter. Invesco Ltd. now owns 1,932,972 shares of the real estate investment trust worth $20,702,000 after acquiring an additional 1,211,245 shares last quarter. Hedge funds and other institutional investors own 46.51% of the company’s shares.

Analyst upgrades and downgrades

Several research companies have recently published reports on the RITM. Credit Suisse Group lowered its price target on Rithm Capital shares to $12.00 in a Friday, July 22 report. Raymond James lowered his price target on Rithm Capital shares from $13.00 to $12.50 and set an “outperform” rating for the company in a Wednesday, Aug. 17 research note. Finally, Piper Sandler downgraded Rithm Capital shares from a “neutral” rating to an “underweight” rating and lowered her price target for the company from $12.00 to $10.00 in a rating of search for Monday, June 13. One financial analyst gave the stock a sell rating and six gave the company’s stock a buy rating. Based on MarketBeat data, Rithm Capital currently has an average rating of “Moderate Buy” and a consensus price target of $11.80.

About Rhythm Capital

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Rhythm Capital Corp. provides capital and services to the real estate and financial services industries in the United States. Its investment portfolio includes mortgage servicing assets, residential securities and loans, and consumer loans. It is considered a real estate investment trust for federal income tax purposes.

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