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

Rhythm Capital Corp. (NYSE:RITM – Get Rating) was the target of unusual options trading on Monday. Investors bought 7,848 call options on the stock. This is a 15% increase from the typical volume of 6,849 call options.

Rhythm Capital Stock up 2.3%

Shares of NYSE RITM traded up $0.17 midday on Monday, hitting $7.54. 174,076 shares of the company were traded, against an average volume of 5,523,263. The company has a debt ratio of 0.09, a quick ratio of 0.52 and a current ratio of 0.52. The stock has a market capitalization of $3.52 billion, a PE ratio of 3.75 and a beta of 1.73. The company’s fifty-day moving average is $8.86 and its two-hundred-day moving average is $9.83. Rithm Capital has a fifty-two week low of $6.86 and a fifty-two week high of $11.81.

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

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 28. Shareholders of record on Tuesday, October 4 will receive a dividend of $0.25. This represents a dividend of $1.00 on an annualized basis and a yield of 13.26%. The ex-dividend date is Monday, October 3. Rithm Capital’s dividend payout ratio (DPR) is currently 50.25%.

Rithm Capital Institutional Trading

Hedge funds and other institutional investors have recently increased or reduced their stakes in the company. TCI Wealth Advisors Inc. increased its position in Rithm Capital shares by 311.1% in the 1st quarter. TCI Wealth Advisors Inc. now owns 2,454 shares of the real estate investment trust worth $27,000 after acquiring an additional 1,857 shares during the period. Quent Capital LLC increased its position in Rithm Capital shares by 468.2% in the 1st quarter. Quent Capital LLC now owns 2,801 shares of the real estate investment trust worth $31,000 after acquiring 2,308 additional shares during the period. McIlrath & Eck LLC purchased a new equity stake from Rithm Capital in Q2 for approximately $28,000. Lindbrook Capital LLC increased its position in Rithm Capital shares by 426.3% during the second quarter. Lindbrook Capital LLC now owns 3,063 shares of the real estate investment trust worth $29,000 after purchasing an additional 2,481 shares during the period. Finally, EverSource Wealth Advisors LLC purchased a new position in Rithm Capital stock during Q2 worth approximately $45,000. Institutional investors and hedge funds hold 46.51% of the company’s shares.

Changes to analyst ratings

Several equity research analysts have recently commented on the company. Barclays cut its target price on Rithm Capital from $13.00 to $10.00 and set an “overweight” rating for the company in a report on Monday. Credit Suisse Group cut its price target on Rithm Capital to $11.00 in a research note on Thursday. Raymond James cut his price target on Rithm Capital from $13.00 to $12.50 and set an “outperform” rating for the company in a Wednesday, August 17 research note. Finally, Piper Sandler upgraded Rithm Capital from an “underweight” rating to a “neutral” rating and reduced its price target for the stock from $10.00 to $9.00 in a research note from the Friday, September 30. One equity research analyst gave the stock a hold rating and five gave the company a buy rating. According to, Rithm Capital currently has a consensus rating of “Moderate Buy” and an average target price of $11.17.

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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