Rithm Capital Corp. (NYSE:RITM) Sees Large Drop in Short Interest

Rithm Capital Corp. (NYSE:RITM) was the target of a large drop in short interest in the month of January. As of January 31st, there was short interest totalling 3,900,000 shares, a drop of 17.4% from the January 15th total of 4,720,000 shares. Currently, 0.8% of the company’s shares are sold short. Based on an average daily trading volume, of 3,640,000 shares, the short-interest ratio is presently 1.1 days.

Analysts Set New Price Targets

Several brokerages have issued reports on RITM. Royal Bank of Canada restated an “outperform” rating and issued a $13.00 price target on shares of Rithm Capital in a research report on Thursday, November 21st. Keefe, Bruyette & Woods raised their target price on Rithm Capital from $13.00 to $13.50 and gave the stock an “outperform” rating in a research report on Tuesday, December 3rd. B. Riley upgraded Rithm Capital to a “strong-buy” rating in a research report on Tuesday, January 7th. Wedbush restated an “outperform” rating and set a $14.00 price objective on shares of Rithm Capital in a research report on Thursday, November 7th. Finally, Piper Sandler upped their target price on Rithm Capital from $11.50 to $12.50 and gave the company a “neutral” rating in a report on Friday, February 7th. One investment analyst has rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $12.94.

Rithm Capital Price Performance

Shares of RITM opened at $12.03 on Friday. The firm has a market cap of $6.25 billion, a PE ratio of 7.20 and a beta of 1.79. Rithm Capital has a 52-week low of $10.36 and a 52-week high of $12.10. The business’s 50 day moving average price is $11.23 and its two-hundred day moving average price is $11.16. The company has a debt-to-equity ratio of 1.63, a quick ratio of 1.35 and a current ratio of 1.35.

Rithm Capital (NYSE:RITM) last issued its earnings results on Thursday, February 6th. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.16. Rithm Capital had a net margin of 17.79% and a return on equity of 18.46%. On average, equities analysts anticipate that Rithm Capital will post 1.92 EPS for the current year.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Tuesday, December 31st were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 8.32%. The ex-dividend date of this dividend was Tuesday, December 31st. Rithm Capital’s payout ratio is 59.88%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RITM. Sanctuary Advisors LLC acquired a new position in Rithm Capital during the second quarter worth $173,000. Creative Planning raised its holdings in shares of Rithm Capital by 20.6% in the 3rd quarter. Creative Planning now owns 77,109 shares of the real estate investment trust’s stock worth $875,000 after acquiring an additional 13,152 shares during the last quarter. Godsey & Gibb Inc. bought a new position in Rithm Capital in the 3rd quarter valued at about $51,000. Calton & Associates Inc. acquired a new position in Rithm Capital during the 3rd quarter valued at about $763,000. Finally, International Assets Investment Management LLC raised its stake in shares of Rithm Capital by 895.6% in the third quarter. International Assets Investment Management LLC now owns 167,617 shares of the real estate investment trust’s stock worth $1,902,000 after purchasing an additional 150,782 shares during the last quarter. 44.92% of the stock is owned by institutional investors and hedge funds.

Rithm Capital Company Profile

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.