Stock Traders Buy Large Volume of Call Options on New Residential Investment (NYSE:NRZ)

New Residential Investment Corp. (NYSE:NRZ) was the target of unusually large options trading activity on Friday. Stock investors purchased 45,787 call options on the stock. This is an increase of 570% compared to the typical daily volume of 6,833 call options.

NRZ opened at $9.48 on Friday. New Residential Investment has a 1 year low of $2.91 and a 1 year high of $17.66. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.40 and a quick ratio of 0.40. The company has a market capitalization of $3.94 billion, a price-to-earnings ratio of -2.98 and a beta of 1.81. The firm’s fifty day moving average price is $8.16 and its two-hundred day moving average price is $7.65.

New Residential Investment (NYSE:NRZ) last released its quarterly earnings results on Saturday, October 31st. The real estate investment trust reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.06). The firm had revenue of $685.00 million for the quarter, compared to analysts’ expectations of $623.19 million. New Residential Investment had a positive return on equity of 14.58% and a negative net margin of 96.73%. The firm’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.50 earnings per share. As a group, equities analysts anticipate that New Residential Investment will post 1.46 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Monday, October 5th were issued a $0.15 dividend. The ex-dividend date of this dividend was Friday, October 2nd. This is a positive change from New Residential Investment’s previous quarterly dividend of $0.10. This represents a $0.60 annualized dividend and a dividend yield of 6.33%. New Residential Investment’s dividend payout ratio is currently 27.65%.

A number of institutional investors have recently modified their holdings of NRZ. Acadian Asset Management LLC bought a new position in New Residential Investment in the 3rd quarter valued at $26,000. Glassman Wealth Services boosted its holdings in shares of New Residential Investment by 854.7% in the 3rd quarter. Glassman Wealth Services now owns 3,351 shares of the real estate investment trust’s stock worth $27,000 after buying an additional 3,000 shares during the last quarter. Catalyst Capital Advisors LLC grew its position in New Residential Investment by 61.7% during the third quarter. Catalyst Capital Advisors LLC now owns 3,880 shares of the real estate investment trust’s stock valued at $31,000 after buying an additional 1,480 shares during the period. Bank Julius Baer & Co. Ltd Zurich purchased a new stake in New Residential Investment during the third quarter worth about $34,000. Finally, Flagship Harbor Advisors LLC raised its position in New Residential Investment by 199.9% in the third quarter. Flagship Harbor Advisors LLC now owns 8,116 shares of the real estate investment trust’s stock worth $64,000 after acquiring an additional 5,410 shares during the period. Institutional investors and hedge funds own 45.59% of the company’s stock.

Several equities research analysts have weighed in on the stock. Raymond James lifted their price target on shares of New Residential Investment from $8.50 to $10.50 and gave the company an “outperform” rating in a research note on Thursday, August 20th. UBS Group initiated coverage on New Residential Investment in a research report on Thursday, September 24th. They issued a “buy” rating and a $11.00 target price for the company. Wolfe Research assumed coverage on New Residential Investment in a research note on Friday, November 6th. They issued an “outperform” rating for the company. Argus raised New Residential Investment from a “hold” rating to a “buy” rating and set a $10.00 target price on the stock in a research report on Monday, July 27th. Finally, Compass Point initiated coverage on shares of New Residential Investment in a research report on Tuesday, October 20th. They issued a “buy” rating and a $11.00 price target for the company. Two investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $11.00.

New Residential Investment Company Profile

New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs.

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