Rithm Capital Corp. (NYSE:RITM) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Rithm Capital Corp. (NYSE:RITM) have received a consensus rating of “Moderate Buy” from the eleven analysts that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating and ten have assigned a buy rating to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $13.65.

Several analysts recently commented on the stock. Wall Street Zen lowered shares of Rithm Capital from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Compass Point began coverage on Rithm Capital in a research note on Monday. They set a “buy” rating and a $14.00 price objective for the company. Wedbush decreased their target price on Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a report on Friday, May 1st. Weiss Ratings downgraded Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Finally, Piper Sandler decreased their price target on Rithm Capital from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Thursday, April 2nd.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total value of $748,528.50. Following the transaction, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. This trade represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.57% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rithm Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RITM. Vanguard Group Inc. lifted its holdings in shares of Rithm Capital by 2.4% in the fourth quarter. Vanguard Group Inc. now owns 50,282,841 shares of the real estate investment trust’s stock valued at $548,083,000 after purchasing an additional 1,191,923 shares in the last quarter. State Street Corp grew its holdings in shares of Rithm Capital by 5.3% during the fourth quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust’s stock valued at $117,701,000 after buying an additional 530,607 shares in the last quarter. Geode Capital Management LLC raised its position in Rithm Capital by 4.8% during the fourth quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust’s stock valued at $104,904,000 after buying an additional 443,144 shares during the period. Qube Research & Technologies Ltd raised its position in Rithm Capital by 80.7% during the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock valued at $89,878,000 after buying an additional 3,524,330 shares during the period. Finally, Norges Bank purchased a new stake in Rithm Capital in the 4th quarter worth about $77,067,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

Rithm Capital Price Performance

NYSE:RITM opened at $9.34 on Wednesday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. The business’s 50-day moving average price is $9.59 and its 200 day moving average price is $10.34. Rithm Capital has a 52-week low of $8.43 and a 52-week high of $12.74. The firm has a market cap of $5.21 billion, a P/E ratio of 8.57 and a beta of 1.14.

Rithm Capital (NYSE:RITM) last issued its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). The business had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. As a group, sell-side analysts predict that Rithm Capital will post 2.27 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Monday, April 6th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a yield of 10.7%. Rithm Capital’s dividend payout ratio is currently 91.74%.

About Rithm Capital

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.