Rithm Capital (NYSE:RITM) Share Price Breaks Below Fifty Day Moving Average - Here's Why

Key Points

• Rithm Capital shares fell below their 50-day moving average, trading as low as $9.00 versus a 50-day average of $9.17; the stock last traded at about $9.01.
• Analysts’ average rating is Moderate Buy, with an average price target of $12.80. Ten analysts rate the stock Buy and one rates it Sell.
• Rithm beat quarterly earnings and revenue estimates, reporting EPS of $0.55 against a $0.50 consensus and revenue of $1.76 billion. Its quarterly dividend was $0.25 per share, equivalent to an annualized yield of about 11.1%.

Rithm Capital Corp. (NYSE:RITM - Get Free Report)'s share price crossed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $9.17 and traded as low as $9.00. Rithm Capital shares last traded at $9.0050, with a volume of 4,555,693 shares.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Wall Street Zen raised Rithm Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Wedbush started coverage on Rithm Capital in a research note on Thursday, October 22nd. They issued an "outperform" rating and a $10.00 price target for the company. BTIG Research cut their price target on shares of Rithm Capital from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Weiss Ratings lowered shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 2nd. Finally, UBS Group decreased their price objective on shares of Rithm Capital from $14.50 to $14.00 and set a "buy" rating for the company in a report on Friday, August 21st. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $12.80.

Rithm Capital Price Performance

The company has a market cap of $5.03 billion, a price-to-earnings ratio of 14.29, a PEG ratio of 0.57 and a beta of 1.16. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 2.12. The company's fifty day moving average price is $9.17 and its two-hundred day moving average price is $9.62.

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

Rithm Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Thursday, October 1st were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 11.1%. The ex-dividend date was Thursday, October 1st. Rithm Capital's dividend payout ratio is 158.73%.

Insider Activity

In other news, Director Peggy Hebard sold 14,520 shares of the company's stock in a transaction dated 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 transaction, the director directly owned 82,259 shares of the company's stock, valued at $837,396.62. This represents a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Nicola Santoro, Jr. sold 100,000 shares of the stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $9.51, for a total value of $951,000.00. Following the transaction, the chief financial officer owned 81,281 shares of the company's stock, valued at approximately $772,982.31. The trade was a 55.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Rithm Capital

Several institutional investors have recently bought and sold shares of the company. Arizona State Retirement System raised its holdings in shares of Rithm Capital by 0.7% in the second quarter. Arizona State Retirement System now owns 153,387 shares of the real estate investment trust's stock valued at $1,440,000 after purchasing an additional 1,016 shares during the last quarter. B. Riley Wealth Advisors Inc. grew its position in Rithm Capital by 8.8% in the third quarter. B. Riley Wealth Advisors Inc. now owns 14,777 shares of the real estate investment trust's stock valued at $132,000 after purchasing an additional 1,200 shares in the last quarter. Fifth Third Bancorp grew its position in Rithm Capital by 24.9% in the third quarter. Fifth Third Bancorp now owns 6,241 shares of the real estate investment trust's stock valued at $56,000 after purchasing an additional 1,244 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in Rithm Capital by 14.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 10,309 shares of the real estate investment trust's stock valued at $98,000 after buying an additional 1,274 shares during the last quarter. Finally, Range Financial Group LLC increased its stake in Rithm Capital by 0.7% in the 3rd quarter. Range Financial Group LLC now owns 178,876 shares of the real estate investment trust's stock valued at $1,597,000 after buying an additional 1,329 shares during the last quarter. Institutional investors own 44.92% of the company's stock.

About Rithm Capital

Rithm Capital Corp. is a global alternative asset manager focused on real estate, credit and financial services. Its activities include investing in residential mortgage loans and related assets, as well as mortgage origination and servicing through its operating businesses. The company also manages investment strategies through its asset management platform, which includes Sculptor Capital Management. Its investments and operations are concentrated in the United States, alongside international investment activities.

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