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

Shares of Rithm Capital Corp. (NYSE:RITM) have earned an average recommendation of “Moderate Buy” from the ten brokerages that are currently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation and nine have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $13.6111.

A number of research firms have recently issued reports on RITM. UBS Group reduced their price target on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research note on Friday, April 10th. Piper Sandler reduced their price target on shares of Rithm Capital from $15.00 to $14.00 and set an “overweight” rating on the stock in a research note on Thursday, April 2nd. Wedbush reduced their price target on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a research note on Friday, May 1st. Citizens Jmp boosted their price target on shares of Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a research note on Wednesday, May 20th. Finally, Wall Street Zen downgraded shares of Rithm Capital from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd.

Insider Activity

In other news, Director David Saltzman sold 80,922 shares of the business’s 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 sale, the director directly owned 44,248 shares of the company’s stock, valued at approximately $409,294. The trade was a 64.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RITM. CoreCap Advisors LLC boosted its stake in shares of Rithm Capital by 99.2% in the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock valued at $25,000 after purchasing an additional 1,143 shares during the period. Los Angeles Capital Management LLC purchased a new position in shares of Rithm Capital in the fourth quarter valued at approximately $26,000. Bessemer Group Inc. boosted its stake in shares of Rithm Capital by 658.9% in the third 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 during the period. Atlantic Union Bankshares Corp purchased a new position in shares of Rithm Capital in the third quarter valued at approximately $31,000. Finally, FNY Investment Advisers LLC purchased a new position in shares of Rithm Capital in the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Rithm Capital Price Performance

Rithm Capital stock opened at $9.13 on Wednesday. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74. The stock has a market cap of $5.10 billion, a P/E ratio of 8.37 and a beta of 1.14. The company has a 50-day moving average price of $9.59 and a 200 day moving average price of $10.36. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 4.02.

Rithm Capital (NYSE:RITM) last released its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. Sell-side analysts anticipate that Rithm Capital will post 2.27 earnings per share for the current year.

Rithm Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Monday, April 6th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 11.0%. The ex-dividend date of this dividend was Monday, April 6th. Rithm Capital’s payout ratio is 91.74%.

Rithm Capital Company Profile

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.