New Residential Investment Corp (NYSE:NRZ) Sees Large Growth in Short Interest

New Residential Investment Corp (NYSE:NRZ) was the recipient of a large growth in short interest during the month of October. As of October 31st, there was short interest totalling 16,950,000 shares, a growth of 18.0% from the September 30th total of 14,370,000 shares. Based on an average trading volume of 3,470,000 shares, the days-to-cover ratio is presently 4.9 days. Approximately 4.1% of the shares of the stock are sold short.

NRZ has been the topic of several recent research reports. Piper Jaffray Companies decreased their price target on New Residential Investment from $18.00 to $16.00 and set an “overweight” rating on the stock in a report on Friday, October 4th. BTIG Research initiated coverage on New Residential Investment in a report on Friday, September 6th. They set a “buy” rating and a $18.00 price target on the stock. Zacks Investment Research upgraded New Residential Investment from a “sell” rating to a “hold” rating in a report on Friday, November 1st. Wedbush restated an “outperform” rating on shares of New Residential Investment in a report on Monday, August 19th. Finally, B. Riley set a $18.50 price target on New Residential Investment and gave the company a “buy” rating in a report on Friday, October 25th. Two equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $18.00.

NRZ stock remained flat at $$16.12 during midday trading on Tuesday. The company’s stock had a trading volume of 2,133,655 shares, compared to its average volume of 3,704,961. The company’s 50-day moving average price is $15.53 and its two-hundred day moving average price is $15.48. New Residential Investment has a twelve month low of $13.63 and a twelve month high of $17.81. The stock has a market cap of $6.74 billion, a price-to-earnings ratio of 6.77 and a beta of 1.10.

New Residential Investment (NYSE:NRZ) last released its earnings results on Friday, October 25th. The real estate investment trust reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.01). New Residential Investment had a return on equity of 12.69% and a net margin of 19.60%. The business had revenue of $202.23 million during the quarter, compared to analysts’ expectations of $227.21 million. During the same quarter in the previous year, the business earned $0.63 EPS. As a group, sell-side analysts expect that New Residential Investment will post 2.08 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 31st. Shareholders of record on Thursday, October 3rd were paid a $0.50 dividend. The ex-dividend date was Wednesday, October 2nd. This represents a $2.00 dividend on an annualized basis and a yield of 12.41%. New Residential Investment’s payout ratio is 84.03%.

In other news, Director Robert Mcginnis bought 4,500 shares of the stock in a transaction dated Wednesday, October 30th. The stock was purchased at an average cost of $15.73 per share, for a total transaction of $70,785.00. Following the transaction, the director now owns 61,243 shares of the company’s stock, valued at $963,352.39. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 0.47% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in NRZ. Grassi Investment Management grew its position in shares of New Residential Investment by 4.5% during the 2nd quarter. Grassi Investment Management now owns 18,700 shares of the real estate investment trust’s stock worth $288,000 after buying an additional 800 shares in the last quarter. Sheaff Brock Investment Advisors LLC grew its position in shares of New Residential Investment by 2.2% during the 3rd quarter. Sheaff Brock Investment Advisors LLC now owns 36,763 shares of the real estate investment trust’s stock worth $576,000 after buying an additional 800 shares in the last quarter. Metropolitan Life Insurance Co NY grew its position in shares of New Residential Investment by 9.3% during the 1st quarter. Metropolitan Life Insurance Co NY now owns 9,747 shares of the real estate investment trust’s stock worth $164,000 after buying an additional 828 shares in the last quarter. Eqis Capital Management Inc. grew its position in shares of New Residential Investment by 1.8% during the 2nd quarter. Eqis Capital Management Inc. now owns 46,804 shares of the real estate investment trust’s stock worth $720,000 after buying an additional 849 shares in the last quarter. Finally, United Capital Financial Advisers LLC grew its position in shares of New Residential Investment by 2.2% during the 2nd quarter. United Capital Financial Advisers LLC now owns 40,191 shares of the real estate investment trust’s stock worth $637,000 after buying an additional 850 shares in the last quarter. Institutional investors and hedge funds own 52.34% of the company’s stock.

About New Residential Investment

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 Servicing and Originations, 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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