Rithm Capital Corp. (NYSE:RITM) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts give Rithm Capital a “Moderate Buy” consensus: 10 of 11 brokerages rate the stock a buy, with an average 12-month price target of $13.15 versus a recent price of $9.66.
• Rithm Capital reported quarterly EPS of $0.60, beating the $0.50 consensus estimate. The company also maintains a quarterly dividend of $0.25, equivalent to a 10.4% annualized yield.
• Institutional investors own 44.92% of the stock, while recent analyst actions were mixed, including upgraded price targets from some firms and a reduction from Piper Sandler.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eleven brokerages that are covering the company, Marketbeat reports. One investment analyst has rated the stock with a hold rating and ten have given a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $13.15.

Several research firms have recently issued reports on RITM. Weiss Ratings raised Rithm Capital from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 25th. Compass Point assumed coverage on Rithm Capital in a report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective for the company. Citizens Jmp boosted their price objective on Rithm Capital from $12.50 to $13.50 and gave the company a "market outperform" rating in a research note on Wednesday, May 20th. Citigroup reissued an "outperform" rating on shares of Rithm Capital in a research note on Wednesday, May 20th. Finally, Piper Sandler lowered 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.

Rithm Capital Trading Down 2.0%

Shares of NYSE:RITM opened at $9.66 on Friday. The firm has a market cap of $5.39 billion, a price-to-earnings ratio of 16.10, a PEG ratio of 0.62 and a beta of 1.12. The company's fifty day simple moving average is $9.78 and its 200 day simple moving average is $9.62. Rithm Capital has a 12 month low of $8.43 and a 12 month high of $12.68. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 2.19.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. As a group, research analysts forecast that Rithm Capital will post 2.26 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 2nd were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 10.4%. The ex-dividend date was Thursday, July 2nd. Rithm Capital's payout ratio is currently 166.67%.

Insider Activity at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the sale, the director owned 82,259 shares of the company's stock, valued at $837,396.62. This trade represents a 15.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.57% of the company's stock.

Institutional Trading of Rithm Capital

Hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of Rithm Capital in the 4th quarter worth approximately $77,067,000. California State Teachers Retirement System lifted its stake in Rithm Capital by 882.5% in the second quarter. California State Teachers Retirement System now owns 6,104,383 shares of the real estate investment trust's stock worth $57,320,000 after purchasing an additional 5,483,068 shares during the last quarter. Qube Research & Technologies Ltd lifted its stake in Rithm Capital by 80.7% in the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after purchasing an additional 3,524,330 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Rithm Capital in the second quarter worth about $29,635,000. Finally, Principal Financial Group Inc. lifted its stake in shares of Rithm Capital by 17,546.2% in the 1st quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust's stock valued at $25,536,000 after acquiring an additional 2,678,431 shares during the last quarter. 44.92% of the stock is owned by institutional investors.

Rithm Capital Company Profile

Rithm Capital Corporation NYSE: RITM is a real estate investment trust that focuses on investments and operating businesses tied to the residential mortgage and real estate markets. The company seeks to generate income from mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other related assets.

Rithm also owns and operates businesses involved in mortgage origination, servicing and related financial services. Its platform includes Newrez, a mortgage company that provides loan origination, servicing and associated services to homeowners and borrowers in the United States.

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