Rithm Capital (NYSE:RITM) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Rithm Capital (NYSE:RITM) from a hold rating to a sell rating in a research report report published on Monday.

A number of other brokerages also recently issued reports on RITM. Keefe, Bruyette & Woods decreased their price target on shares of Rithm Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. BTIG Research decreased their price target on Rithm Capital from $16.00 to $13.00 and set a “buy” rating for the company in a report on Tuesday, June 16th. Wedbush lowered their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a research report on Friday, May 1st. JonesTrading restated a “buy” rating and set a $13.50 price objective on shares of Rithm Capital in a research report on Tuesday, April 28th. Finally, UBS Group reduced their target price on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research note 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, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $13.20.

Rithm Capital Stock Performance

Rithm Capital stock opened at $9.31 on Monday. The firm has a 50 day simple moving average of $9.36 and a 200-day simple moving average of $10.07. The stock has a market cap of $5.20 billion, a price-to-earnings ratio of 8.54 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.28 and a quick ratio of 1.28. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing the consensus estimate of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.27 billion. On average, analysts expect that Rithm Capital will post 2.27 EPS for the current year.

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital’s dividend payout ratio is 91.74%.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the firm’s stock in a transaction that occurred 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 sale, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. This trade represents a 64.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. CoreCap Advisors LLC grew its stake in shares of Rithm Capital by 99.2% during the 4th quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock worth $25,000 after purchasing an additional 1,143 shares during the period. Los Angeles Capital Management LLC purchased a new position in shares of Rithm Capital in the 4th quarter valued at about $26,000. FNY Investment Advisers LLC acquired a new stake in shares of Rithm Capital in the fourth quarter valued at about $31,000. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Rithm Capital in the fourth quarter valued at about $31,000. Finally, Altshuler Shaham Ltd boosted its holdings 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 buying an additional 1,800 shares in the last quarter. Hedge funds and other institutional investors 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.