Rithm Capital (NYSE:RITM) Sees Large Volume Increase - Time to Buy?

Key Points

• Rithm Capital experienced a significant trading volume shift with 3.8 million shares traded, a 19% drop from the previous day's volume.
• Analysts are optimistic about Rithm Capital, with a consensus target price of $14.25 and multiple "buy" ratings from major firms.
• The company announced a quarterly dividend of $0.25 per share, reflecting an annualized yield of 9.0%, with the payout date set for October 31st.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) shares saw strong trading volume on Thursday . 3,812,043 shares traded hands during trading, a decline of 19% from the previous session's volume of 4,735,210 shares.The stock last traded at $11.16 and had previously closed at $11.22.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. BTIG Research restated a "buy" rating and issued a $16.00 price target on shares of Rithm Capital in a research report on Wednesday, September 17th. Wedbush reiterated an "outperform" rating and set a $14.00 price objective on shares of Rithm Capital in a research note on Wednesday, August 6th. UBS Group raised their target price on shares of Rithm Capital from $14.00 to $16.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Jones Trading upped their price target on shares of Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Finally, Royal Bank Of Canada increased their price target on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $14.25.

Rithm Capital Price Performance

The business's fifty day moving average price is $12.20 and its 200 day moving average price is $11.55. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. The stock has a market cap of $5.92 billion, a P/E ratio of 8.57 and a beta of 1.31.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. The business had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.18 billion. Rithm Capital had a net margin of 16.72% and a return on equity of 18.89%. Sell-side analysts forecast that Rithm Capital Corp. will post 1.93 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Wednesday, October 1st will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.0%. The ex-dividend date is Wednesday, October 1st. Rithm Capital's dividend payout ratio is presently 76.92%.

Hedge Funds Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently bought and sold shares of RITM. Kingstone Capital Partners Texas LLC bought a new stake in shares of Rithm Capital in the second quarter worth $96,027,000. Norges Bank bought a new position in Rithm Capital during the 2nd quarter worth $72,762,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Rithm Capital during the 2nd quarter worth about $24,938,000. Mackenzie Financial Corp grew its position in shares of Rithm Capital by 288.6% in the 1st quarter. Mackenzie Financial Corp now owns 2,725,392 shares of the real estate investment trust's stock valued at $31,206,000 after buying an additional 2,024,090 shares during the last quarter. Finally, Wellington Management Group LLP increased its stake in shares of Rithm Capital by 36.3% in the first quarter. Wellington Management Group LLP now owns 4,907,737 shares of the real estate investment trust's stock valued at $56,194,000 after buying an additional 1,307,276 shares during the period. Institutional investors and hedge funds own 44.92% of the company's stock.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.

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