Rithm Capital (NYSE:RITM) Stock Price Target Cut by BTIG Research

Key Points

• BTIG Research cut Rithm Capital’s price target from $13.00 to $12.00 while maintaining a “buy” rating, implying approximately 39% upside from the stock’s $8.63 closing price.
• Analyst sentiment remains broadly positive, with 10 buy ratings and one sell rating; the consensus rating is “Moderate Buy” with an average target price of $13.05. However, Weiss Ratings downgraded the stock to “sell.”
• Rithm Capital’s latest quarterly earnings beat expectations, reporting $0.60 per share versus a $0.50 estimate, while institutional investors own approximately 44.92% of the company.

Rithm Capital (NYSE:RITM - Get Free Report) had its price objective dropped by analysts at BTIG Research from $13.00 to $12.00 in a research report issued on Monday, Benzinga reports. The firm presently has a "buy" rating on the real estate investment trust's stock. BTIG Research's price target would indicate a potential upside of 38.97% from the stock's previous close.

Other research analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 2nd. Piper Sandler dropped their target price on shares of Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. UBS Group cut their target price on shares of Rithm Capital from $14.50 to $14.00 and set a "buy" rating for the company in a research note on Friday, August 21st. Finally, Wall Street Zen upgraded Rithm Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Ten investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Rithm Capital has an average rating of "Moderate Buy" and a consensus target price of $13.05.

Rithm Capital Stock Down 0.1%

NYSE:RITM opened at $8.63 on Monday. Rithm Capital has a twelve month low of $8.40 and a twelve month high of $12.15. The firm has a market capitalization of $4.82 billion, a price-to-earnings ratio of 14.39, a price-to-earnings-growth ratio of 0.55 and a beta of 1.16. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.19. The stock's 50 day moving average price is $9.71 and its two-hundred day moving average price is $9.54.

Rithm Capital (NYSE:RITM - Get Free Report) last released its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. Equities research analysts expect that Rithm Capital will post 2.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the transaction, the director directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.57% of the stock is currently owned by company insiders.

Institutional Trading of Rithm Capital

A number of hedge funds have recently modified their holdings of RITM. Wellington Management Group LLP raised its stake in Rithm Capital by 14.4% in the 2nd quarter. Wellington Management Group LLP now owns 11,616,077 shares of the real estate investment trust's stock worth $109,075,000 after purchasing an additional 1,466,315 shares in the last quarter. Bank of New York Mellon Corp grew its position in shares of Rithm Capital by 71.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,390,135 shares of the real estate investment trust's stock worth $32,138,000 after purchasing an additional 1,416,415 shares in the last quarter. Royal Bank of Canada grew its position in shares of Rithm Capital by 12.5% during the 1st quarter. Royal Bank of Canada now owns 2,974,882 shares of the real estate investment trust's stock worth $28,202,000 after purchasing an additional 331,513 shares in the last quarter. Principal Financial Group Inc. grew its position in shares of Rithm Capital by 17,546.2% during the 1st quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust's stock worth $25,536,000 after purchasing an additional 2,678,431 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Rithm Capital during the second quarter worth approximately $22,001,000. Institutional investors and hedge funds own 44.92% of the company's stock.

About Rithm Capital

Rithm Capital Corp. NYSE: RITM is a real estate investment trust and asset management company focused primarily on the residential real estate and mortgage markets. The company invests in and manages mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other real estate-related assets.

Rithm also operates businesses involved in mortgage origination, loan servicing and related financial services. Through its platforms and investments, the company provides financing and servicing solutions connected with residential real estate and manages assets across the housing market.

The company was formerly known as New Residential Investment Corp.

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