Rithm Capital (NYSE:RITM) Share Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Rithm Capital shares fell below their 200-day moving average, trading as low as $8.95 versus the $9.57 average, signaling short-term technical weakness.
• Despite the decline, analysts remain broadly positive: 10 rate the stock a Buy and one a Hold, producing a “Moderate Buy” consensus and an average price target of $13.15.
• The company reported quarterly EPS of $0.60, beating estimates by $0.10, and announced a $0.25 quarterly dividend. The annualized $1.00 payout implies an 11% yield, though the payout ratio is elevated at 166.67%.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $9.57 and traded as low as $8.95. Rithm Capital shares last traded at $9.0820, with a volume of 8,632,015 shares.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on RITM shares. Compass Point began coverage on shares of Rithm Capital in a report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective on the stock. UBS Group lowered 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. Piper Sandler dropped their target price on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. Wall Street Zen raised Rithm Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Weiss Ratings raised Rithm Capital from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 25th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $13.15.

Rithm Capital Price Performance

The stock has a market capitalization of $5.07 billion, a price-to-earnings ratio of 15.14, a price-to-earnings-growth ratio of 0.58 and a beta of 1.12. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 2.19. The company's 50 day moving average is $9.84 and its 200 day moving average is $9.57.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share (EPS) 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%. Research analysts anticipate that Rithm Capital Corp. will post 2.26 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 11.0%. The ex-dividend date of this dividend is Thursday, October 1st. Rithm Capital's payout ratio is presently 166.67%.

Insider Activity

In related 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 value of $147,813.60. Following the completion of the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.57% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in Rithm Capital in the 4th quarter valued at about $77,067,000. Bank of New York Mellon Corp purchased a new stake in Rithm Capital during the 2nd quarter valued at approximately $29,635,000. Principal Financial Group Inc. lifted its position in 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 acquiring an additional 2,678,431 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Rithm Capital during the 2nd quarter worth approximately $22,001,000. Finally, Wellington Management Group LLP lifted its position in Rithm Capital by 14.4% during 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 acquiring an additional 1,466,315 shares during the period. Hedge funds and other institutional investors own 44.92% of the company's stock.

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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