Rithm Capital Corp. (NYSE:RITM) Stock Now Rated “Moderate Buy” by Wall Street Analysts

Shares of Rithm Capital Corp. (NYSE:RITM) have been given a consensus rating of “Moderate Buy” by the eleven ratings firms that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation and ten have given a buy recommendation to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $12.80.

RITM has been the topic of several recent research reports. Weiss Ratings cut shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 2nd. UBS Group lowered their price target on Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a research note on Friday, August 21st. Keefe, Bruyette & Woods increased their price objective on shares of Rithm Capital from $12.50 to $13.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 27th. Wall Street Zen raised shares of Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Wedbush started coverage on Rithm Capital in a research report on Thursday, October 22nd. They set an “outperform” rating and a $10.00 target price for the company.

Insider Buying and Selling

In related news, CFO Nicola Santoro, Jr. sold 100,000 shares of the firm’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $9.51, for a total transaction of $951,000.00. Following the completion of the sale, the chief financial officer directly owned 81,281 shares of the company’s stock, valued at approximately $772,982.31. This trade represents a 55.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peggy Hebard sold 14,520 shares of the firm’s stock in a transaction 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 sale, the director owned 82,259 shares in the company, valued at approximately $837,396.62. The trade was a 15.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rithm Capital

A number of large investors have recently added to or reduced their stakes in RITM. Cetera Investment Advisers increased its holdings in shares of Rithm Capital by 26.9% in the 1st quarter. Cetera Investment Advisers now owns 1,447,552 shares of the real estate investment trust’s stock valued at $13,723,000 after acquiring an additional 306,615 shares during the last quarter. BlueCrest Capital Management Ltd lifted its stake in Rithm Capital by 37.8% during the second quarter. BlueCrest Capital Management Ltd now owns 2,046,427 shares of the real estate investment trust’s stock worth $19,216,000 after purchasing an additional 561,819 shares during the last quarter. Squarepoint Ops LLC bought a new position in Rithm Capital in the 2nd quarter valued at about $2,574,000. NewEdge Advisors LLC lifted its holdings in shares of Rithm Capital by 670.7% during the second quarter. NewEdge Advisors LLC now owns 150,132 shares of the real estate investment trust’s stock valued at $1,410,000 after purchasing an additional 130,651 shares during the last quarter. Finally, Family Manage LLC raised its holdings in shares of Rithm Capital by 62.1% during the first quarter. Family Manage LLC now owns 487,557 shares of the real estate investment trust’s stock worth $4,622,000 after acquiring an additional 186,816 shares in the last quarter. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Rithm Capital Price Performance

Shares of RITM opened at $9.23 on Friday. The company’s fifty day simple moving average is $9.23 and its 200 day simple moving average is $9.67. Rithm Capital has a 1-year low of $8.31 and a 1-year high of $12.15. The company has a current ratio of 0.83, a quick ratio of 0.58 and a debt-to-equity ratio of 2.12. The company has a market cap of $5.16 billion, a price-to-earnings ratio of 3.94, a PEG ratio of 0.58 and a beta of 1.16.

Rithm Capital (NYSE:RITM) last released its quarterly earnings data on Friday, October 23rd. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05. The company had revenue of $1.76 billion for 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%. On average, research analysts forecast that Rithm Capital will post 2.32 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Thursday, October 1st were given a $0.25 dividend. The ex-dividend date was Thursday, October 1st. This represents a $1.00 dividend on an annualized basis and a yield of 10.8%. Rithm Capital’s payout ratio is currently 158.73%.

Rithm Capital Company Profile

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.