Rithm Capital (NYSE:RITM) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Rithm Capital (NYSE:RITM) from a hold rating to a buy rating in a research note published on Saturday morning.

A number of other analysts have also weighed in on RITM. Wedbush started coverage on Rithm Capital in a research note on Monday, December 15th. They set an “outperform” rating and a $14.00 price objective for the company. UBS Group set a $15.00 target price on shares of Rithm Capital in a research note on Friday, February 6th. Piper Sandler reiterated an “overweight” rating and set a $15.00 price target (down from $15.50) on shares of Rithm Capital in a report on Wednesday, February 4th. Weiss Ratings reissued a “hold (c+)” rating on shares of Rithm Capital in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Rithm Capital in a report on Thursday, December 18th. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Rithm Capital has a consensus rating of “Moderate Buy” and an average price target of $14.50.

Rithm Capital Stock Down 1.2%

RITM opened at $9.66 on Friday. The company has a market cap of $5.37 billion, a P/E ratio of 9.29 and a beta of 1.21. Rithm Capital has a 12 month low of $9.13 and a 12 month high of $12.74. The business’s 50-day moving average price is $10.92 and its 200-day moving average price is $11.25. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.20.

Rithm Capital (NYSE:RITM) last issued its earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.19. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%.The company had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.24 billion. On average, equities analysts expect that Rithm Capital will post 1.93 EPS for the current year.

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 10.4%. Rithm Capital’s payout ratio is 96.15%.

Institutional Trading of Rithm Capital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. CoreCap Advisors LLC raised its holdings in Rithm Capital by 99.2% in the 4th quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock worth $25,000 after purchasing an additional 1,143 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Rithm Capital in the 4th quarter worth about $26,000. Bessemer Group Inc. boosted its stake in shares of Rithm Capital by 658.9% during the 3rd quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock valued at $30,000 after purchasing an additional 2,306 shares in the last quarter. Atlantic Union Bankshares Corp bought a new stake in shares of Rithm Capital during the 3rd quarter valued at about $31,000. Finally, FNY Investment Advisers LLC purchased a new position in shares of Rithm Capital during the fourth quarter valued at about $31,000. Hedge funds and other institutional investors own 44.92% of the company’s stock.

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.