Rithm Capital (NYSE:RITM) Shares Pass Below Two Hundred Day Moving Average – Here’s Why

Rithm Capital Corp. (NYSE:RITM)’s stock price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $11.56 and traded as low as $11.34. Rithm Capital shares last traded at $11.75, with a volume of 12,188,552 shares.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Jones Trading restated a “buy” rating and issued a $13.50 price objective on shares of Rithm Capital in a report on Thursday, October 30th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. Piper Sandler reissued an “overweight” rating and issued a $15.50 price target on shares of Rithm Capital in a research note on Monday, December 22nd. Weiss Ratings restated a “hold (c+)” rating on shares of Rithm Capital in a research report on Monday, December 29th. Finally, Wedbush began coverage on Rithm Capital in a research note on Monday, December 15th. They issued an “outperform” rating and a $14.00 price objective on the stock. Eight investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $14.44.

Rithm Capital Stock Up 3.5%

The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 1.52. The stock’s 50-day simple moving average is $11.18 and its 200 day simple moving average is $11.56. The firm has a market cap of $6.51 billion, a P/E ratio of 8.10 and a beta of 1.21.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings data on Thursday, October 30th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.54. Rithm Capital had a return on equity of 18.82% and a net margin of 17.08%.The company had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. As a group, research analysts forecast that Rithm Capital Corp. will post 1.93 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Shareholders of record on Wednesday, December 31st will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.5%. The ex-dividend date is Wednesday, December 31st. Rithm Capital’s dividend payout ratio is presently 68.97%.

Insider Activity at Rithm Capital

In other news, insider David Zeiden sold 19,285 shares of Rithm Capital stock in a transaction on Friday, November 14th. The shares were sold at an average price of $11.11, for a total value of $214,256.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Nierenberg sold 301,548 shares of the business’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $11.00, for a total transaction of $3,317,028.00. The SEC filing for this sale provides additional information. Company insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Westbourne Investment Advisors Inc. bought a new position in shares of Rithm Capital during the 2nd quarter worth $593,000. JPMorgan Chase & Co. raised its stake in Rithm Capital by 16.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,415,844 shares of the real estate investment trust’s stock valued at $15,985,000 after acquiring an additional 201,720 shares during the period. Thrivent Financial for Lutherans lifted its holdings in Rithm Capital by 108.7% during the second quarter. Thrivent Financial for Lutherans now owns 188,633 shares of the real estate investment trust’s stock valued at $2,129,000 after purchasing an additional 98,269 shares during the last quarter. Kingstone Capital Partners Texas LLC purchased a new stake in Rithm Capital during the second quarter valued at about $96,027,000. Finally, Synergy Asset Management LLC bought a new position in Rithm Capital during the third quarter worth about $2,821,000. 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.