Rithm Capital (NYSE:RITM) Cut to “Sell” at Wall Street Zen

Rithm Capital (NYSE:RITM) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

A number of other equities analysts also recently issued reports on the company. Citigroup reiterated an “outperform” rating on shares of Rithm Capital in a report on Wednesday, May 20th. Capital One Financial set a $12.50 target price on shares of Rithm Capital in a research report on Thursday, April 9th. Weiss Ratings lowered shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, May 26th. Compass Point started coverage on shares of Rithm Capital in a research note on Monday, June 8th. They set a “buy” rating and a $14.00 price objective on the stock. Finally, BTIG Research cut their price objective on shares of Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a report on Tuesday. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Rithm Capital currently has an average rating of “Moderate Buy” and an average price target of $13.35.

Rithm Capital Stock Performance

Shares of RITM opened at $9.21 on Friday. The company has a 50-day simple moving average of $9.54 and a two-hundred day simple moving average of $10.23. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.28 and a quick ratio of 1.28. The firm has a market capitalization of $5.14 billion, a PE ratio of 8.45 and a beta of 1.14. Rithm Capital has a one year low of $8.43 and a one year high of $12.74.

Rithm Capital (NYSE:RITM) last announced its earnings results 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 during the quarter, compared to the consensus estimate of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. On average, analysts anticipate that Rithm Capital will post 2.27 EPS for the current fiscal year.

Insider Activity at Rithm Capital

In related news, Director David Saltzman sold 80,922 shares of the firm’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 transaction of $748,528.50. Following the completion of the sale, the director 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.57% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rithm Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its stake in Rithm Capital by 20.4% during the 1st quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock valued at $889,000 after purchasing an additional 13,166 shares during the last quarter. NewEdge Advisors LLC raised its stake in shares of Rithm Capital by 5.3% in the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock worth $359,000 after purchasing an additional 1,585 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Rithm Capital by 75.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock valued at $17,627,000 after purchasing an additional 662,585 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Rithm Capital by 14.3% during the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after purchasing an additional 881 shares in the last quarter. Finally, M&T Bank Corp boosted its position in shares of Rithm Capital by 13.9% during the second quarter. M&T Bank Corp now owns 26,173 shares of the real estate investment trust’s stock valued at $296,000 after buying an additional 3,200 shares during the last quarter. 44.92% of the stock is owned by institutional investors.

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.