Rithm Capital Corp. (NYSE:RITM) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Rithm Capital has an average analyst rating of “Moderate Buy” from 11 brokerages, with 10 buy ratings and one sell rating. The average 1-year price target is $13.20, above the stock’s recent trading level.
• The company recently reported mixed quarterly results: EPS of $0.51 missed expectations by $0.02, but revenue of $1.38 billion topped estimates. Analysts still expect Rithm to earn 2.23 EPS for the full year.
• Rithm Capital announced a quarterly dividend of $0.25, or $1.00 annualized, which implies a 10.9% yield. The payout ratio is elevated at 91.74%, suggesting most earnings are being returned to shareholders.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the eleven brokerages that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation and ten have given a buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $13.20.

A number of analysts have weighed in on RITM shares. Keefe, Bruyette & Woods dropped their target price on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Weiss Ratings lowered shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, May 26th. Capital One Financial set a $12.50 target price on Rithm Capital in a research note on Thursday, April 9th. Piper Sandler dropped their price target on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Finally, Citizens Jmp raised their price target on Rithm Capital from $12.50 to $13.50 and gave the stock a "market outperform" rating in a report on Wednesday, May 20th.

Rithm Capital Trading Up 0.1%

NYSE:RITM opened at $9.15 on Thursday. The company has a market cap of $5.11 billion, a PE ratio of 8.40 and a beta of 1.14. The business's 50 day moving average is $9.22 and its two-hundred day moving average is $9.91. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital has a 52 week low of $8.43 and a 52 week high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. On average, analysts predict that Rithm Capital will post 2.23 EPS for the current year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a yield of 10.9%. Rithm Capital's dividend payout ratio (DPR) is currently 91.74%.

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total value of $748,528.50. Following the sale, the director directly owned 44,248 shares in the company, valued at approximately $409,294. This trade represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.57% of the company's stock.

Institutional Trading of Rithm Capital

Large investors have recently modified their holdings of the company. Curi Capital LLC increased its holdings in shares of Rithm Capital by 0.7% during the second quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust's stock valued at $1,358,000 after purchasing an additional 829 shares during the period. Geneos Wealth Management Inc. lifted its holdings in Rithm Capital by 14.3% in the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after purchasing an additional 881 shares during the period. City Holding Co. grew its position in Rithm Capital by 35.1% in the 4th quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust's stock valued at $42,000 after buying an additional 1,000 shares in the last quarter. Westbourne Investment Advisors Inc. grew its position in Rithm Capital by 1.8% in the 4th quarter. Westbourne Investment Advisors Inc. now owns 55,500 shares of the real estate investment trust's stock valued at $605,000 after buying an additional 1,000 shares in the last quarter. Finally, Fort Sheridan Advisors LLC increased its stake in Rithm Capital by 0.3% during the 4th quarter. Fort Sheridan Advisors LLC now owns 367,164 shares of the real estate investment trust's stock valued at $4,002,000 after buying an additional 1,000 shares during the period. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Company Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.

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