Rithm Capital (NYSE:RITM) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• Rithm Capital shares fell to a new 52-week low of $8.37 after BTIG Research cut its price target from $13 to $12, although it maintained a buy rating.
• Analyst sentiment remains broadly positive, with 10 buy ratings and one sell rating producing a “Moderate Buy” consensus and an average price target of $13.05.
• Rithm declared a quarterly dividend of $0.25 per share, or $1.00 annualized, implying an approximately 11.9% yield; however, its dividend payout ratio is elevated at 166.67%.

Shares of Rithm Capital Corp. (NYSE:RITM - Get Free Report) hit a new 52-week low during trading on Tuesday after BTIG Research lowered their price target on the stock from $13.00 to $12.00. BTIG Research currently has a buy rating on the stock. Rithm Capital traded as low as $8.37 and last traded at $8.3850, with a volume of 3,992,948 shares traded. The stock had previously closed at $8.52.

Several other brokerages have also issued reports on RITM. Wall Street Zen upgraded shares of Rithm Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. 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 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. Finally, Piper Sandler decreased their price objective on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $13.05.

Insider Activity at Rithm Capital

In other news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director owned 82,259 shares of the company's stock, valued at approximately $837,396.62. This represents a 15.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.57% of the company's stock.

Institutional Trading of Rithm Capital

Large investors have recently added to or reduced their stakes in the company. Altshuler Shaham Ltd grew its position in shares of Rithm Capital by 100.0% in the first quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust's stock valued at $34,000 after purchasing an additional 1,800 shares during the last quarter. Bogart Wealth LLC lifted its holdings in Rithm Capital by 108.5% during the 1st quarter. Bogart Wealth LLC now owns 4,120 shares of the real estate investment trust's stock worth $39,000 after purchasing an additional 2,144 shares during the last quarter. Sound Income Strategies LLC acquired a new stake in Rithm Capital during the 1st quarter worth approximately $41,000. Kelly Lawrence W & Associates Inc. CA acquired a new stake in Rithm Capital during the 2nd quarter worth approximately $42,000. Finally, Ameritas Advisory Services LLC bought a new stake in Rithm Capital in the 2nd quarter valued at $43,000. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Price Performance

The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.19. The company has a 50 day moving average of $9.68 and a 200-day moving average of $9.54. The firm has a market capitalization of $4.71 billion, a P/E ratio of 14.07, a P/E/G ratio of 0.55 and a beta of 1.16.

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 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.10. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. On average, sell-side analysts predict that Rithm Capital Corp. will post 2.26 EPS for the current year.

Rithm Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 1st will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 11.9%. The ex-dividend date of this dividend is Thursday, October 1st. Rithm Capital's dividend payout ratio (DPR) is currently 166.67%.

Rithm Capital Company Profile

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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