Rithm Capital (NYSE:RITM) Share Price Passes Below 200-Day Moving Average – Here’s Why

Rithm Capital Corp. (NYSE:RITM)’s stock price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $10.29 and traded as low as $9.15. Rithm Capital shares last traded at $9.1950, with a volume of 5,082,598 shares changing hands.

Analysts Set New Price Targets

Several research analysts have commented on the company. Citigroup reissued an “outperform” rating on shares of Rithm Capital in a research report on Wednesday, May 20th. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, May 26th. Wedbush cut their price objective on Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a research report on Friday, May 1st. UBS Group cut their price objective on Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research report on Friday, April 10th. Finally, Citizens Jmp raised their price objective on Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a research report on Wednesday, May 20th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Rithm Capital presently has an average rating of “Moderate Buy” and an average target price of $13.65.

Rithm Capital Stock Down 1.2%

The firm has a 50-day simple moving average of $9.57 and a 200 day simple moving average of $10.29. 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 company has a market capitalization of $5.13 billion, a PE ratio of 8.44 and a beta of 1.14.

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 analysts’ consensus estimates of $0.53 by ($0.02). Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%.The business had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.27 billion. On average, research analysts predict that Rithm Capital Corp. will post 2.27 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Monday, April 6th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.9%. The ex-dividend date of this dividend was Monday, April 6th. Rithm Capital’s payout ratio is presently 91.74%.

Insider Activity

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.57% of the company’s stock.

Institutional Trading of Rithm Capital

Hedge funds and other institutional investors have recently modified their holdings of the business. CoreCap Advisors LLC increased its position in shares of Rithm Capital by 99.2% during the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock worth $25,000 after acquiring an additional 1,143 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Rithm Capital during the fourth quarter worth about $26,000. Bessemer Group Inc. increased its position in shares of Rithm Capital by 658.9% during the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 2,306 shares during the last quarter. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Rithm Capital during the fourth quarter worth about $31,000. Finally, FNY Investment Advisers LLC purchased a new stake in shares of Rithm Capital during the fourth quarter worth about $31,000. 44.92% of the stock is owned by hedge funds and other 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.