Rithm Capital (NYSE:RITM) Reaches New 1-Year High – Here’s Why

Rithm Capital Corp. (NYSE:RITM)’s stock price reached a new 52-week high during trading on Thursday . The company traded as high as $12.10 and last traded at $12.08, with a volume of 310153 shares. The stock had previously closed at $12.02.

Analysts Set New Price Targets

Several equities analysts have weighed in on RITM shares. B. Riley raised Rithm Capital to a “strong-buy” rating in a report on Tuesday, January 7th. Piper Sandler boosted their price objective on Rithm Capital from $11.50 to $12.50 and gave the stock a “neutral” rating in a research report on Friday, February 7th. 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 upped their target price on Rithm Capital from $13.00 to $13.50 and gave the company an “outperform” rating in a report on Tuesday, December 3rd. Finally, Wedbush reiterated an “outperform” rating and set a $14.00 price target on shares of Rithm Capital in a report on Thursday, November 7th. One analyst has rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $13.07.

Rithm Capital Price Performance

The firm has a 50-day moving average of $11.36 and a 200-day moving average of $11.20. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.35 and a current ratio of 1.09. The firm has a market capitalization of $6.28 billion, a P/E ratio of 7.22 and a beta of 1.79.

Rithm Capital (NYSE:RITM) last issued its quarterly earnings results on Thursday, February 6th. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.44 by $0.16. Rithm Capital had a return on equity of 18.15% and a net margin of 17.79%. As a group, analysts predict that Rithm Capital Corp. will post 1.93 EPS for the current year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 31st. Shareholders 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 dividend on an annualized basis and a yield of 8.29%. Rithm Capital’s dividend payout ratio is currently 59.88%.

Hedge Funds Weigh In On Rithm Capital

Institutional investors have recently bought and sold shares of the business. SeaCrest Wealth Management LLC boosted its position in Rithm Capital by 1.0% in the fourth quarter. SeaCrest Wealth Management LLC now owns 94,566 shares of the real estate investment trust’s stock valued at $1,024,000 after buying an additional 951 shares during the last quarter. 1620 Investment Advisors Inc. grew its position in shares of Rithm Capital by 2.1% in the fourth quarter. 1620 Investment Advisors Inc. now owns 46,035 shares of the real estate investment trust’s stock valued at $499,000 after purchasing an additional 960 shares in the last quarter. Summit Trail Advisors LLC grew its holdings in shares of Rithm Capital by 2.0% in the fourth quarter. Summit Trail Advisors LLC now owns 49,380 shares of the real estate investment trust’s stock valued at $547,000 after purchasing an additional 967 shares during the period. Steward Partners Investment Advisory LLC increased its holdings in shares of Rithm Capital by 2.9% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 35,792 shares of the real estate investment trust’s stock worth $388,000 after buying an additional 1,016 shares during the last quarter. Finally, Vident Advisory LLC lifted its stake in shares of Rithm Capital by 7.3% in the 4th quarter. Vident Advisory LLC now owns 15,509 shares of the real estate investment trust’s stock valued at $168,000 after purchasing an additional 1,051 shares during the last quarter. 44.92% of the stock is owned by hedge funds and other institutional investors.

About Rithm Capital

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.