Rithm Capital (NYSE:RITM) Sets New 12-Month Low Following Analyst Downgrade

Rithm Capital Corp. (NYSE:RITM) shares hit a new 52-week low during trading on Tuesday after BTIG Research lowered their price target on the stock from $13.00 to $12.00. BTIG Research currently has a buy rating on the stock. Rithm Capital traded as low as $8.37 and last traded at $8.3850, with a volume of 3,992,948 shares traded. The stock had previously closed at $8.52.

Other equities research analysts have also recently issued reports about the company. Weiss Ratings cut Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 2nd. Wall Street Zen upgraded Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Piper Sandler dropped their price objective on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Finally, UBS Group dropped their price objective on Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a report on Friday, August 21st. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Rithm Capital has an average rating of “Moderate Buy” and an average target price of $13.05.

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the sale, the director directly owned 82,259 shares in the company, valued at $837,396.62. This represents a 15.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.57% of the stock is owned by insiders.

Institutional Trading of Rithm Capital

Large investors have recently made changes to their positions in the company. Wellington Management Group LLP raised its position in Rithm Capital by 14.4% during the second quarter. Wellington Management Group LLP now owns 11,616,077 shares of the real estate investment trust’s stock valued at $109,075,000 after purchasing an additional 1,466,315 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Rithm Capital by 71.8% during the first quarter. Bank of New York Mellon Corp now owns 3,390,135 shares of the real estate investment trust’s stock worth $32,138,000 after purchasing an additional 1,416,415 shares during the last quarter. Royal Bank of Canada boosted its holdings in shares of Rithm Capital by 12.5% in the 1st quarter. Royal Bank of Canada now owns 2,974,882 shares of the real estate investment trust’s stock valued at $28,202,000 after purchasing an additional 331,513 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in shares of Rithm Capital by 17,546.2% in the 1st quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust’s stock valued at $25,536,000 after purchasing an additional 2,678,431 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Rithm Capital in the 2nd quarter valued at $22,001,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

Rithm Capital Stock Performance

The company has a 50 day moving average price of $9.68 and a 200-day moving average price of $9.54. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.19. The company has a market cap of $4.71 billion, a P/E ratio of 14.07, a price-to-earnings-growth ratio of 0.55 and a beta of 1.16.

Rithm Capital (NYSE:RITM) last posted its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, topping 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 analysts expect that Rithm Capital Corp. will post 2.26 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Thursday, October 1st will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 11.9%. The ex-dividend date is Thursday, October 1st. Rithm Capital’s payout ratio is currently 166.67%.

About Rithm Capital

Rithm Capital Corp. (NYSE: RITM) is a real estate investment trust and asset management company focused primarily on the residential real estate and mortgage markets. The company invests in and manages mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other real estate-related assets.

Rithm also operates businesses involved in mortgage origination, loan servicing and related financial services. Through its platforms and investments, the company provides financing and servicing solutions connected with residential real estate and manages assets across the housing market.

The company was formerly known as New Residential Investment Corp.