Rithm Capital (NYSE:RITM) Reaches New 52-Week Low – Here’s What Happened

Rithm Capital Corp. (NYSE:RITM) shares reached a new 52-week low during trading on Wednesday. The stock traded as low as $8.42 and last traded at $8.4250, with a volume of 3077686 shares. The stock had previously closed at $8.66.

Analyst Ratings Changes

Several research firms have issued reports on RITM. Wall Street Zen upgraded Rithm Capital from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. BTIG Research dropped their price objective on Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a report on Tuesday, June 16th. UBS Group cut their target price on Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a research note on Friday, August 21st. Piper Sandler reduced their target price on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Finally, Weiss Ratings cut Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Rithm Capital currently has an average rating of “Moderate Buy” and a consensus price target of $13.15.

Rithm Capital Stock Down 2.4%

The company has a 50 day moving average of $9.79 and a 200-day moving average of $9.55. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.76 and a quick ratio of 0.76. The company has a market cap of $4.72 billion, a P/E ratio of 14.09, a price-to-earnings-growth ratio of 0.55 and a beta of 1.16.

Rithm Capital (NYSE:RITM) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. On average, equities analysts predict that Rithm Capital Corp. will post 2.26 earnings per share for the current year.

Rithm Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 1st will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 11.8%. The ex-dividend date is Thursday, October 1st. Rithm Capital’s dividend payout ratio is 166.67%.

Insiders Place Their Bets

In other Rithm Capital news, 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 directly owned 82,259 shares in the company, valued at $837,396.62. The trade was a 15.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.57% of the stock is owned by corporate insiders.

Institutional Trading of Rithm Capital

A number of hedge funds have recently made changes to their positions in RITM. Bank of New York Mellon Corp bought a new position in Rithm Capital during the 2nd quarter worth approximately $29,635,000. Principal Financial Group Inc. lifted its position in Rithm Capital by 17,546.2% in the first quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust’s stock valued at $25,536,000 after purchasing an additional 2,678,431 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Rithm Capital during the second quarter valued at approximately $22,001,000. Wellington Management Group LLP boosted its stake in shares of Rithm Capital by 14.4% during the second quarter. Wellington Management Group LLP now owns 11,616,077 shares of the real estate investment trust’s stock valued at $109,075,000 after purchasing an additional 1,466,315 shares during the period. Finally, BlueCrest Capital Management Ltd grew its holdings 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 last quarter. 44.92% of the stock is owned by institutional investors.

About Rithm Capital

Rithm Capital Corp. (NYSE: RITM) is a real estate investment trust and asset management company focused primarily on the residential real estate and mortgage markets. The company invests in and manages mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other real estate-related assets.

Rithm also operates businesses involved in mortgage origination, loan servicing and related financial services. Through its platforms and investments, the company provides financing and servicing solutions connected with residential real estate and manages assets across the housing market.

The company was formerly known as New Residential Investment Corp.