Rithm Capital Target of Unusually Large Options Trading (NYSE:RITM)

Rithm Capital Corp. (NYSE:RITM) was the target of unusually large options trading activity on Friday. Stock investors bought 3,023 call options on the company. This is an increase of 52% compared to the typical daily volume of 1,987 call options.

Analyst Ratings Changes

Several research firms recently issued reports on RITM. BTIG Research cut their target price on Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a research report on Tuesday, June 16th. Piper Sandler lowered their price target on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. UBS Group dropped their price target on Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a research note on Friday, August 21st. Weiss Ratings raised Rithm Capital from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, August 25th. Finally, Compass Point initiated coverage on Rithm Capital in a research note on Monday, June 8th. They issued a “buy” rating and a $14.00 price objective for the company. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Rithm Capital currently has an average rating of “Moderate Buy” and an average price target of $13.15.

Insider Buying and Selling at Rithm Capital

In other news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director owned 82,259 shares in the company, valued at approximately $837,396.62. The trade was a 15.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.57% of the company’s stock.

Institutional Investors Weigh In On Rithm Capital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Altshuler Shaham Ltd lifted its holdings in Rithm Capital by 100.0% during the 1st quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust’s stock worth $34,000 after buying an additional 1,800 shares during the last quarter. Bogart Wealth LLC increased its holdings in shares of Rithm Capital by 108.5% in the first quarter. Bogart Wealth LLC now owns 4,120 shares of the real estate investment trust’s stock valued at $39,000 after buying an additional 2,144 shares in the last quarter. Sound Income Strategies LLC bought a new position in shares of Rithm Capital in the first quarter valued at $41,000. Kelly Lawrence W & Associates Inc. CA bought a new stake in shares of Rithm Capital during the 2nd quarter worth $42,000. Finally, Ameritas Advisory Services LLC acquired a new position in shares of Rithm Capital in the 2nd quarter worth $43,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Rithm Capital Stock Down 1.2%

Shares of RITM traded down $0.12 during midday trading on Friday, reaching $9.38. The stock had a trading volume of 1,222,715 shares, compared to its average volume of 7,712,604. The company has a market cap of $5.24 billion, a price-to-earnings ratio of 15.62, a PEG ratio of 0.60 and a beta of 1.12. The company’s fifty day simple moving average is $9.83 and its two-hundred day simple moving average is $9.60. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.33. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.76 and a quick ratio of 0.76.

Rithm Capital (NYSE:RITM) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. Equities research analysts expect that Rithm Capital will post 2.26 earnings per share for the current year.

Rithm Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.7%. Rithm Capital’s dividend payout ratio is 166.67%.

Key Headlines Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Common dividend maintained: Rithm Capital declared a quarterly common-stock dividend of $0.25 per share, payable October 30 to shareholders of record October 1. The payout implies an annualized dividend of $1.00 and a yield of approximately 10.6% at the reported share price, which may support demand from income-oriented investors. Rithm Capital Declares Third Quarter 2026 Common and Preferred Dividends
• Positive Sentiment: Preferred dividends declared: The company also declared scheduled dividends of $0.6264 on one preferred issue, $0.616 on its 7.125% Series B preferred stock, $0.5732 on its 6.375% Series C preferred stock and $0.4375 on another preferred issue. Continued payments signal that Rithm remains committed to its preferred-stock obligations and income distribution policy. Rithm Capital Preferred Dividend
• Positive Sentiment: Asset sale provides liquidity: Rithm sold an Arlington office building for $56.25 million. The transaction could improve liquidity and demonstrate active portfolio management, although the company did not disclose the gain or use of proceeds in the provided report. Rithm Capital Sells Arlington Office Building
• Neutral Sentiment: Investor-relations leadership change: Ann DeVries was appointed head of investor relations. The move may improve communication with shareholders and analysts, but it has no immediate impact on earnings or cash flow. Rithm Capital Appoints Ann DeVries
• Neutral Sentiment: Valuation viewed as reasonable: A recent analysis said RITM’s share price appears reasonable relative to its earnings despite weaker short-term performance. Analysts remain broadly positive, but bullish recommendations alone may provide limited support unless operating results improve. Rithm Capital Stock Looks Reasonable Relative to Earnings

About Rithm Capital

Rithm Capital Corporation (NYSE:RITM) is a real estate investment trust that focuses on investments and operating businesses tied to the residential mortgage and real estate markets. The company seeks to generate income from mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other related assets.

Rithm also owns and operates businesses involved in mortgage origination, servicing and related financial services. Its platform includes Newrez, a mortgage company that provides loan origination, servicing and associated services to homeowners and borrowers in the United States.