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

Shares of Rithm Capital Corp. (NYSE:RITM) have been given a consensus rating of “Moderate Buy” by the eleven brokerages that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating and ten have assigned a buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $13.20.

A number of research analysts recently issued reports on RITM shares. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Piper Sandler reduced their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Capital One Financial set a $12.50 price objective on shares of Rithm Capital in a research note on Thursday, April 9th. Wedbush dropped their target price on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a report on Friday, May 1st. Finally, UBS Group cut their target price on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research note on Friday, April 10th.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the stock in a transaction on Wednesday, May 20th. The stock was 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 in the company, valued at approximately $409,294. This represents a 64.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.57% of the company’s stock.

Institutional Investors Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently modified their holdings of the stock. CoreCap Advisors LLC boosted its position in shares of 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 valued at $25,000 after purchasing an additional 1,143 shares during the period. Los Angeles Capital Management LLC acquired a new stake in Rithm Capital during the 4th quarter worth about $26,000. Garton & Associates Financial Advisors LLC purchased a new stake in Rithm Capital during the fourth quarter valued at about $31,000. FNY Investment Advisers LLC purchased a new stake in Rithm Capital during the fourth quarter valued at about $31,000. Finally, Torren Management LLC acquired a new position in shares of Rithm Capital in the fourth quarter worth about $35,000. 44.92% of the stock is owned by institutional investors and hedge funds.

Rithm Capital Stock Performance

RITM opened at $9.15 on Thursday. The business has a 50 day moving average price of $9.22 and a two-hundred day moving average price of $9.91. 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 $5.11 billion, a price-to-earnings ratio of 8.40 and a beta of 1.14. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74.

Rithm Capital (NYSE:RITM) last issued its quarterly 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 for the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. Research analysts predict that Rithm Capital will post 2.23 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.9%. Rithm Capital’s dividend payout ratio is currently 91.74%.

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.