Rithm Capital (NYSE:RITM) Coverage Initiated by Analysts at Compass Point

Stock analysts at Compass Point started coverage on shares of Rithm Capital (NYSE:RITM) in a research note issued to investors on Monday. The firm set a “buy” rating and a $14.00 price target on the real estate investment trust’s stock. Compass Point’s price objective would suggest a potential upside of 53.41% from the stock’s current price.

Several other research firms also recently weighed in on RITM. Citizens Jmp raised their price objective on Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a research note on Wednesday, May 20th. Piper Sandler lowered their target price on Rithm Capital from $15.00 to $14.00 and set an “overweight” rating on the stock in a report on Thursday, April 2nd. Citigroup restated an “outperform” rating on shares of Rithm Capital in a research report on Wednesday, May 20th. Weiss Ratings downgraded Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, May 26th. Finally, UBS Group decreased their price objective on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research report on Friday, April 10th. Ten analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, Rithm Capital has an average rating of “Moderate Buy” and a consensus target price of $13.65.

Rithm Capital Stock Performance

NYSE RITM opened at $9.13 on Monday. The business’s 50 day moving average is $9.59 and its two-hundred day moving average is $10.36. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74. The stock has a market capitalization of $5.10 billion, a price-to-earnings ratio of 8.37 and a beta of 1.14. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 4.02.

Rithm Capital (NYSE:RITM) last released its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). The business had revenue of $1.38 billion during 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%. Research analysts expect that Rithm Capital will post 2.27 EPS for the current year.

Insider Buying and Selling

In related news, Director David Saltzman sold 80,922 shares of the company’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 completion of the transaction, the director directly owned 44,248 shares in the company, valued at approximately $409,294. This represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Western Wealth Management LLC acquired a new stake in shares of Rithm Capital in the first quarter worth approximately $62,000. Janus Henderson Group PLC increased its position in Rithm Capital by 15.6% during the first quarter. Janus Henderson Group PLC now owns 259,927 shares of the real estate investment trust’s stock worth $2,465,000 after purchasing an additional 35,000 shares during the last quarter. Arkadios Wealth Advisors purchased a new position in Rithm Capital during the first quarter worth approximately $206,000. Altshuler Shaham Ltd raised its stake in Rithm Capital by 100.0% during the first quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust’s stock worth $34,000 after purchasing an additional 1,800 shares during the period. Finally, Amundi boosted its holdings in shares of Rithm Capital by 261.1% in the 1st quarter. Amundi now owns 65,992 shares of the real estate investment trust’s stock valued at $626,000 after purchasing an additional 47,716 shares during the last quarter. Institutional investors and hedge funds 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.