Rithm Capital Corp. (NYSE:RITM) Short Interest Down 23.5% in December

Rithm Capital Corp. (NYSE:RITM) was the target of a large decline in short interest in the month of December. As of December 15th, there was short interest totaling 9,576,073 shares, a decline of 23.5% from the November 30th total of 12,517,320 shares. Based on an average daily volume of 5,259,790 shares, the days-to-cover ratio is presently 1.8 days. Approximately 1.7% of the company’s stock are sold short. Approximately 1.7% of the company’s stock are sold short. Based on an average daily volume of 5,259,790 shares, the days-to-cover ratio is presently 1.8 days.

Rithm Capital Stock Down 0.1%

Shares of NYSE:RITM traded down $0.01 during midday trading on Tuesday, hitting $11.06. The stock had a trading volume of 4,548,532 shares, compared to its average volume of 5,321,737. The company has a market cap of $6.13 billion, a P/E ratio of 7.63 and a beta of 1.22. Rithm Capital has a 12 month low of $9.13 and a 12 month high of $12.74. The business’s 50-day simple moving average is $11.11 and its 200-day simple moving average is $11.57. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 1.52.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings results on Thursday, October 30th. The real estate investment trust reported $0.54 EPS for the quarter, meeting analysts’ consensus estimates of $0.54. Rithm Capital had a net margin of 17.08% and a return on equity of 18.82%. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. On average, sell-side analysts forecast that Rithm Capital will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 30th. Investors of record on Wednesday, December 31st will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 9.0%. The ex-dividend date is Wednesday, December 31st. Rithm Capital’s dividend payout ratio (DPR) is 68.97%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Wedbush assumed coverage on shares of Rithm Capital in a research note on Monday, December 15th. They issued an “outperform” rating and a $14.00 target price for the company. Jones Trading reaffirmed a “buy” rating and set a $13.50 price objective on shares of Rithm Capital in a research report on Thursday, October 30th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a report on Thursday, December 18th. Weiss Ratings restated a “hold (c+)” rating on shares of Rithm Capital in a research note on Monday. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $15.50 price target on shares of Rithm Capital in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Rithm Capital presently has an average rating of “Buy” and a consensus price target of $14.44.

Insider Buying and Selling

In other Rithm Capital news, insider David Zeiden sold 19,285 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $11.11, for a total transaction of $214,256.35. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Michael Nierenberg sold 301,548 shares of Rithm Capital stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $11.00, for a total transaction of $3,317,028.00. The SEC filing for this sale provides additional information. 0.44% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rithm Capital

Institutional investors have recently bought and sold shares of the business. Cullen Frost Bankers Inc. acquired a new stake in shares of Rithm Capital in the second quarter valued at approximately $30,000. Bessemer Group Inc. increased its holdings in shares of Rithm Capital by 658.9% during the 3rd quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 2,306 shares during the last quarter. Atlantic Union Bankshares Corp bought a new stake in Rithm Capital in the 3rd quarter valued at $31,000. Mather Group LLC. acquired a new stake in Rithm Capital during the 3rd quarter valued at $33,000. Finally, Optimum Investment Advisors lifted its holdings in Rithm Capital by 200.0% during the 3rd quarter. Optimum Investment Advisors now owns 3,000 shares of the real estate investment trust’s stock valued at $34,000 after purchasing an additional 2,000 shares during the last quarter. Institutional investors and hedge funds 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.