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

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

Rithm Capital Stock Up 0.3 %

RITM stock opened at $12.03 on Friday. Rithm Capital has a 52 week low of $10.36 and a 52 week high of $12.10. The business has a 50-day simple moving average of $11.23 and a 200 day simple moving average of $11.16. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.63. The company has a market cap of $6.25 billion, a PE ratio of 7.20 and a beta of 1.79.

Rithm Capital (NYSE:RITM) last posted its quarterly 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%. Sell-side analysts anticipate that Rithm Capital will post 1.92 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

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

Wall Street Analyst Weigh In

RITM has been the subject of several research reports. Piper Sandler raised their price objective on shares of Rithm Capital from $11.50 to $12.50 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Wedbush restated an “outperform” rating and issued a $14.00 price target on shares of Rithm Capital in a research note on Thursday, November 7th. Royal Bank of Canada reiterated an “outperform” rating and set a $13.00 price objective on shares of Rithm Capital in a research report on Thursday, November 21st. JMP Securities reissued a “market outperform” rating and issued a $12.50 target price on shares of Rithm Capital in a research report on Thursday, January 23rd. Finally, Keefe, Bruyette & Woods raised their price target on shares of Rithm Capital from $13.00 to $13.50 and gave the stock an “outperform” rating in a research report on Tuesday, December 3rd. One research analyst has rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $12.94.

Institutional Trading of Rithm Capital

Several large investors have recently bought and sold shares of the business. DoubleLine ETF Adviser LP lifted its holdings in shares of Rithm Capital by 6.6% in the fourth quarter. DoubleLine ETF Adviser LP now owns 37,319 shares of the real estate investment trust’s stock worth $404,000 after acquiring an additional 2,317 shares during the last quarter. Westbourne Investments Inc. bought a new position in Rithm Capital in the 4th quarter valued at approximately $129,000. Utah Retirement Systems boosted its position in Rithm Capital by 5.3% in the fourth quarter. Utah Retirement Systems now owns 27,911 shares of the real estate investment trust’s stock valued at $302,000 after buying an additional 1,400 shares in the last quarter. Schonfeld Strategic Advisors LLC grew its stake in shares of Rithm Capital by 30.8% during the fourth quarter. Schonfeld Strategic Advisors LLC now owns 78,209 shares of the real estate investment trust’s stock worth $847,000 after buying an additional 18,436 shares during the last quarter. Finally, Lido Advisors LLC lifted its stake in shares of Rithm Capital by 18.1% in the 4th quarter. Lido Advisors LLC now owns 93,243 shares of the real estate investment trust’s stock valued at $1,033,000 after acquiring an additional 14,302 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.