Rithm Capital (NYSE:RITM) Hits New 1-Year Low – Time to Sell?

Rithm Capital Corp. (NYSE:RITM) hit a new 52-week low during trading on Wednesday. The stock traded as low as $8.42 and last traded at $8.4250, with a volume of 3077686 shares trading hands. The stock had previously closed at $8.66.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RITM. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 2nd. BTIG Research cut their price objective on Rithm Capital from $16.00 to $13.00 and set a “buy” rating for the company in a report on Tuesday, June 16th. Piper Sandler decreased their target price on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Wall Street Zen upgraded shares of Rithm Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Finally, UBS Group dropped their price target on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a research report on Friday, August 21st. Ten investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $13.15.

Rithm Capital Price Performance

The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 2.19. The company has a 50 day moving average price of $9.74 and a 200 day moving average price of $9.54. The company has a market capitalization of $4.81 billion, a P/E ratio of 14.36, a P/E/G ratio of 0.54 and a beta of 1.16.

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

Rithm Capital Dividend Announcement

The company also recently announced 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 is Thursday, October 1st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 11.6%. Rithm Capital’s dividend payout ratio (DPR) is 166.67%.

Insiders Place Their Bets

In related news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director directly owned 82,259 shares in the company, valued at $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 is available through the SEC website. Insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Altshuler Shaham Ltd increased its position in Rithm Capital by 100.0% during the first quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust’s stock worth $34,000 after acquiring an additional 1,800 shares during the period. Bogart Wealth LLC raised its position 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 acquired a new stake in Rithm Capital during the first quarter worth approximately $41,000. Kelly Lawrence W & Associates Inc. CA bought a new position in Rithm Capital during the 2nd quarter worth $42,000. Finally, Ameritas Advisory Services LLC acquired a new position in Rithm Capital in the 2nd quarter valued at $43,000. Institutional investors own 44.92% of the company’s stock.

Rithm Capital Company Profile

Rithm Capital Corp. (NYSE: RITM) is a real estate investment trust and asset management company focused primarily on the residential real estate and mortgage markets. The company invests in and manages mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other real estate-related assets.

Rithm also operates businesses involved in mortgage origination, loan servicing and related financial services. Through its platforms and investments, the company provides financing and servicing solutions connected with residential real estate and manages assets across the housing market.

The company was formerly known as New Residential Investment Corp.