Rithm Capital Corp. (NYSE:RITM) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Eleven brokerages rate Rithm Capital “Moderate Buy,” with ten buy ratings and one sell rating. The average 12-month price target is $13.20 versus a share price of $10.37.
• Rithm Capital exceeded quarterly earnings expectations, reporting $0.60 EPS compared with the $0.50 consensus estimate. Analysts expect full-year EPS of approximately $2.26.
• The company maintains a high-yield dividend: Its quarterly payout of $0.25 equates to $1.00 annually and a 9.6% yield, although the 166.67% payout ratio exceeds reported earnings.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eleven ratings firms that are presently covering the firm, Marketbeat reports. One investment 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 updated their coverage on the stock in the last year is $13.20.

A number of research firms have commented on RITM. Compass Point started coverage on shares of Rithm Capital in a report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective for the company. Royal Bank Of Canada lowered their target price on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. BTIG Research dropped their price target on Rithm Capital from $16.00 to $13.00 and set a "buy" rating for the company in a research report on Tuesday, June 16th. Wall Street Zen raised Rithm Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Keefe, Bruyette & Woods reduced their price objective on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st.

Rithm Capital Trading Up 0.0%

Shares of RITM stock opened at $10.37 on Monday. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74. The company has a market cap of $5.79 billion, a price-to-earnings ratio of 17.28 and a beta of 1.14. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.76 and a quick ratio of 0.76. The stock has a 50 day simple moving average of $9.46 and a 200-day simple moving average of $9.73.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, beating analysts' consensus estimates 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, equities research analysts expect that Rithm Capital will post 2.26 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.6%. Rithm Capital's dividend payout ratio (DPR) is 166.67%.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the business's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total transaction of $748,528.50. Following the transaction, the director owned 44,248 shares of the company's stock, valued at approximately $409,294. The trade was a 64.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.57% of the stock is currently owned by corporate insiders.

Institutional Trading of Rithm Capital

Institutional investors have recently made changes to their positions in the company. Cetera Investment Advisers increased its stake in Rithm Capital by 26.9% during the first quarter. Cetera Investment Advisers now owns 1,447,552 shares of the real estate investment trust's stock worth $13,723,000 after purchasing an additional 306,615 shares during the period. Family Manage LLC boosted its stake in shares of Rithm Capital by 62.1% in the first quarter. Family Manage LLC now owns 487,557 shares of the real estate investment trust's stock valued at $4,622,000 after purchasing an additional 186,816 shares during the period. WINTON GROUP Ltd purchased a new position in shares of Rithm Capital in the fourth quarter valued at approximately $2,007,000. Independent Financial Group LLC acquired a new position in shares of Rithm Capital in the first quarter valued at approximately $1,061,000. Finally, UBS Group AG grew its holdings in shares of Rithm Capital by 4.0% in the fourth quarter. UBS Group AG now owns 3,869,113 shares of the real estate investment trust's stock valued at $42,173,000 after purchasing an additional 150,291 shares in the last quarter. Hedge funds and other institutional investors own 44.92% of the company's stock.

About Rithm Capital

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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