Rithm Capital (NYSE:RITM) Shares Break Above 50-Day Moving Average – Here’s What Happened

Rithm Capital Corp. (NYSE:RITM) shares passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $9.26 and traded as high as $9.58. Rithm Capital shares last traded at $9.5050, with a volume of 5,456,375 shares traded.

Analysts Set New Price Targets

Several brokerages have weighed in on RITM. Weiss Ratings cut Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 2nd. Wall Street Zen raised Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Keefe, Bruyette & Woods lifted their target price on Rithm Capital from $12.50 to $13.00 and gave the stock an “outperform” rating in a report on Tuesday, October 27th. UBS Group cut their target price on Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a research report on Friday, August 21st. Finally, Wedbush assumed coverage on Rithm Capital in a report on Thursday, October 22nd. They set an “outperform” rating and a $10.00 price target on the stock. Ten research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $12.80.

Rithm Capital Stock Up 3.1%

The company’s fifty day moving average price is $9.26 and its 200-day moving average price is $9.69. The stock has a market cap of $5.31 billion, a P/E ratio of 15.09, a price-to-earnings-growth ratio of 0.57 and a beta of 1.16. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.58 and a current ratio of 0.55.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Friday, October 23rd. The real estate investment trust reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05. The firm had revenue of $1.76 billion during the quarter, compared to analysts’ expectations of $1.47 billion. Rithm Capital had a net margin of 8.71% and a return on equity of 20.03%. Equities analysts forecast that Rithm Capital Corp. will post 2.32 EPS for the current year.

Rithm Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Thursday, October 1st were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $1.00 annualized dividend and a yield of 10.5%. Rithm Capital’s dividend payout ratio (DPR) is presently 158.73%.

Insider Activity

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total transaction of $147,813.60. Following the completion of the transaction, the director owned 82,259 shares in the company, valued at $837,396.62. The trade was a 15.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.57% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rithm Capital

Several hedge funds and other institutional investors have recently modified their holdings of the business. Lido Advisors LLC lifted its stake in shares of Rithm Capital by 17.3% during the 3rd quarter. Lido Advisors LLC now owns 187,508 shares of the real estate investment trust’s stock worth $1,674,000 after acquiring an additional 27,707 shares during the last quarter. Fulcrum Asset Management LLP bought a new position in Rithm Capital in the 3rd quarter valued at $463,000. Parallel Advisors LLC grew its position in Rithm Capital by 46.5% in the 3rd quarter. Parallel Advisors LLC now owns 50,097 shares of the real estate investment trust’s stock valued at $447,000 after acquiring an additional 15,909 shares during the last quarter. Alta Advisers Ltd purchased a new stake in Rithm Capital in the third quarter worth $108,000. Finally, Kestra Advisory Services LLC increased its stake in Rithm Capital by 13.9% in the third quarter. Kestra Advisory Services LLC now owns 124,880 shares of the real estate investment trust’s stock worth $1,115,000 after purchasing an additional 15,287 shares during the period. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

About Rithm Capital

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.