Rithm Capital (NYSE:RITM) Share Price Breaks Below Fifty Day Moving Average – Here’s Why

Rithm Capital Corp. (NYSE:RITM)’s stock price crossed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $9.17 and traded as low as $9.00. Rithm Capital shares last traded at $9.0050, with a volume of 4,555,693 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Rithm Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. BTIG Research cut their price target on shares of Rithm Capital from $13.00 to $12.00 and set a “buy” rating for the company in a research note on Monday, October 12th. UBS Group decreased their price objective on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a research report on Friday, August 21st. Weiss Ratings cut shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Finally, Wedbush started coverage on shares of Rithm Capital in a report on Thursday, October 22nd. They issued an “outperform” rating and a $10.00 target price on the stock. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $12.80.

Rithm Capital Trading Down 2.2%

The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.55 and a current ratio of 0.55. The stock has a market capitalization of $5.03 billion, a price-to-earnings ratio of 14.29, a price-to-earnings-growth ratio of 0.57 and a beta of 1.16. The business has a fifty day simple moving average of $9.17 and a 200 day simple moving average of $9.62.

Rithm Capital (NYSE:RITM) last announced its earnings results on Friday, October 23rd. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.05. The company had revenue of $1.76 billion during the quarter, compared to analysts’ expectations of $1.47 billion. Rithm Capital had a net margin of 8.71% and a return on equity of 20.03%. As a group, research analysts expect that Rithm Capital Corp. will post 2.32 EPS for the current year.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Thursday, October 1st were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 11.1%. The ex-dividend date of this dividend was Thursday, October 1st. Rithm Capital’s dividend payout ratio (DPR) is currently 158.73%.

Insider Transactions at Rithm Capital

In other news, CFO Nicola Santoro, Jr. sold 100,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $9.51, for a total transaction of $951,000.00. Following the transaction, the chief financial officer directly owned 81,281 shares of the company’s stock, valued at approximately $772,982.31. This trade represents a 55.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Peggy Hebard sold 14,520 shares of Rithm Capital stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the completion of the sale, the director owned 82,259 shares of the company’s stock, valued at approximately $837,396.62. The trade was a 15.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.57% of the company’s stock.

Hedge Funds Weigh In On Rithm Capital

A number of hedge funds have recently added to or reduced their stakes in RITM. Cetera Investment Advisers lifted its position in shares of Rithm Capital by 26.9% during the 1st quarter. Cetera Investment Advisers now owns 1,447,552 shares of the real estate investment trust’s stock valued at $13,723,000 after acquiring an additional 306,615 shares during the period. BlueCrest Capital Management Ltd increased its position in shares of Rithm Capital by 37.8% in the second quarter. BlueCrest Capital Management Ltd now owns 2,046,427 shares of the real estate investment trust’s stock worth $19,216,000 after purchasing an additional 561,819 shares during the period. Squarepoint Ops LLC bought a new position in shares of Rithm Capital in the second quarter worth $2,574,000. NewEdge Advisors LLC increased its position in shares of Rithm Capital by 670.7% in the second quarter. NewEdge Advisors LLC now owns 150,132 shares of the real estate investment trust’s stock worth $1,410,000 after purchasing an additional 130,651 shares during the period. Finally, Family Manage LLC raised its stake in Rithm Capital by 62.1% in the first quarter. Family Manage LLC now owns 487,557 shares of the real estate investment trust’s stock valued at $4,622,000 after purchasing an additional 186,816 shares in the last quarter. Institutional investors own 44.92% of the company’s stock.

Rithm Capital Company Profile

Rithm Capital Corp. is a global alternative asset manager focused on real estate, credit and financial services. Its activities include investing in residential mortgage loans and related assets, as well as mortgage origination and servicing through its operating businesses. The company also manages investment strategies through its asset management platform, which includes Sculptor Capital Management. Its investments and operations are concentrated in the United States, alongside international investment activities.