Rithm Capital (NYSE:RITM) Sees Large Volume Increase – Should You Buy?

Rithm Capital Corp. (NYSE:RITM) saw strong trading volume on Wednesday . 6,124,078 shares traded hands during mid-day trading, an increase of 21% from the previous session’s volume of 5,058,072 shares.The stock last traded at $11.1050 and had previously closed at $11.05.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RITM. Wedbush began coverage on Rithm Capital in a research report on Monday, December 15th. They set an “outperform” rating and a $14.00 target price on the stock. BTIG Research reiterated a “buy” rating and set a $16.00 price target on shares of Rithm Capital in a research report on Wednesday, September 17th. Piper Sandler restated an “overweight” rating and issued a $15.50 price objective on shares of Rithm Capital in a research report on Monday. UBS Group increased their target price on Rithm Capital from $14.00 to $16.00 and gave the company a “buy” rating in a research report on Wednesday, September 3rd. Finally, Keefe, Bruyette & Woods restated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Rithm Capital has an average rating of “Buy” and a consensus target price of $14.44.

Rithm Capital Stock Performance

The company has a current ratio of 0.45, a quick ratio of 0.45 and a debt-to-equity ratio of 1.52. The firm has a fifty day moving average price of $11.08 and a 200 day moving average price of $11.57. The firm has a market cap of $6.18 billion, a PE ratio of 7.69 and a beta of 1.22.

Rithm Capital (NYSE:RITM) last released its quarterly earnings data on Thursday, October 30th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.54. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. Rithm Capital had a net margin of 17.08% and a return on equity of 18.82%. As a group, equities research analysts expect that Rithm Capital Corp. will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 9.0%. The ex-dividend date of this dividend is Wednesday, December 31st. Rithm Capital’s payout ratio is presently 68.97%.

Insider Buying and Selling

In other news, insider David Zeiden sold 19,285 shares of the company’s stock in a transaction on Friday, November 14th. The stock was sold at an average price of $11.11, for a total value of $214,256.35. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Michael Nierenberg sold 301,548 shares of the stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $11.00, for a total value of $3,317,028.00. The SEC filing for this sale provides additional information. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Kingstone Capital Partners Texas LLC acquired a new position in shares of Rithm Capital in the 2nd quarter worth approximately $96,027,000. Norges Bank purchased a new stake in Rithm Capital in the second quarter valued at approximately $72,762,000. Qube Research & Technologies Ltd lifted its stake in Rithm Capital by 80.7% during the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock worth $89,878,000 after purchasing an additional 3,524,330 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Rithm Capital during the second quarter worth $24,938,000. Finally, UBS Group AG boosted its position in shares of Rithm Capital by 127.9% during the third quarter. UBS Group AG now owns 3,718,822 shares of the real estate investment trust’s stock worth $42,357,000 after buying an additional 2,087,282 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.