Insider Selling: Rithm Capital (NYSE:RITM) CFO Sells $951,000.00 in Stock

Key Points

• Rithm Capital CFO Nicola Santoro, Jr. sold 100,000 shares for $951,000 at an average price of $9.51, reducing his holdings by 55.16% to 81,281 shares.
• The REIT reported quarterly earnings of $0.55 per share, beating the $0.50 consensus estimate, and revenue of $1.76 billion versus estimates of $1.47 billion.
• Rithm’s quarterly dividend of $0.25 equates to a 10.6% annualized yield; analysts’ average rating was “Moderate Buy,” with an average price target of $12.80.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) CFO Nicola Santoro, Jr. sold 100,000 shares of the business's stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $9.51, for a total value of $951,000.00. Following the completion of the sale, the chief financial officer owned 81,281 shares in the company, valued at approximately $772,982.31. The trade was a 55.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Rithm Capital Stock Performance

Shares of NYSE RITM traded down $0.05 during trading on Thursday, reaching $9.45. 7,457,589 shares of the stock traded hands, compared to its average volume of 7,681,455. The company has a debt-to-equity ratio of 2.12, a current ratio of 0.55 and a quick ratio of 0.58. The stock has a market capitalization of $5.28 billion, a P/E ratio of 15.01, a price-to-earnings-growth ratio of 0.57 and a beta of 1.16. Rithm Capital Corp. has a 52-week low of $8.31 and a 52-week high of $12.15. The company has a 50-day moving average of $9.26 and a 200-day moving average of $9.69.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its quarterly earnings data on Friday, October 23rd. The real estate investment trust reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.05. Rithm Capital had a return on equity of 20.03% and a net margin of 8.71%. The company had revenue of $1.76 billion during the quarter, compared to analyst estimates of $1.47 billion. Analysts forecast that Rithm Capital Corp. will post 2.32 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Thursday, October 1st were paid a $0.25 dividend. The ex-dividend date was Thursday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 10.6%. Rithm Capital's dividend payout ratio (DPR) is presently 158.73%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Wedbush began coverage on shares of Rithm Capital in a research note on Thursday, October 22nd. They set an "outperform" rating and a $10.00 price target on the stock. UBS Group reduced their price objective 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. Keefe, Bruyette & Woods boosted their target price on shares of Rithm Capital from $12.50 to $13.00 and gave the company an "outperform" rating in a report on Tuesday, October 27th. Weiss Ratings cut shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 2nd. Finally, BTIG Research dropped their target price on Rithm Capital from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Ten research 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 an average target price of $12.80.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RITM. Mather Group LLC. purchased a new stake in Rithm Capital in the third quarter valued at approximately $29,000. Altshuler Shaham Ltd grew its stake in Rithm Capital by 100.0% in the 1st quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust's stock worth $34,000 after buying an additional 1,800 shares in the last quarter. Bogart Wealth LLC grew its stake in Rithm Capital by 108.5% in the 1st quarter. Bogart Wealth LLC now owns 4,120 shares of the real estate investment trust's stock worth $39,000 after buying an additional 2,144 shares in the last quarter. Sound Income Strategies LLC bought a new position in shares of Rithm Capital in the 1st quarter worth $41,000. Finally, Kelly Lawrence W & Associates Inc. CA bought a new position in shares of Rithm Capital in the 2nd quarter worth $42,000. Hedge funds and other institutional investors own 44.92% of the company's stock.

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.

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