Rithm Capital (NYSE:RITM) Sees Unusually-High Trading Volume – Time to Buy?

Rithm Capital Corp. (NYSE:RITM) shares saw unusually-strong trading volume on Wednesday . Approximately 6,124,078 shares changed hands during trading, an increase of 21% from the previous session’s volume of 5,058,072 shares.The stock last traded at $11.1050 and had previously closed at $11.05.

Analyst Ratings Changes

A number of research analysts recently commented on RITM shares. Jones Trading reissued a “buy” rating and issued a $13.50 price target on shares of Rithm Capital in a report on Thursday, October 30th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a research note on Thursday, December 18th. UBS Group raised their price target on shares of Rithm Capital from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Wednesday, September 3rd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a report on Monday. Finally, Wedbush initiated coverage on shares of Rithm Capital in a report on Monday, December 15th. They set an “outperform” rating and a $14.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $14.44.

Rithm Capital Stock Performance

The company has a 50-day moving average of $11.09 and a 200-day moving average of $11.57. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of 7.69 and a beta of 1.22. The company has a current ratio of 0.45, a quick ratio of 0.45 and a debt-to-equity ratio of 1.52.

Rithm Capital (NYSE:RITM) last released its earnings results on Thursday, October 30th. The real estate investment trust reported $0.54 earnings per share for the quarter, meeting the consensus estimate 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 analyst estimates of $1.07 billion. On average, equities research analysts forecast that Rithm Capital Corp. will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

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

Insider Buying and Selling

In related news, CEO Michael Nierenberg sold 301,548 shares of the business’s stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $11.00, for a total transaction of $3,317,028.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider David Zeiden sold 19,285 shares of the company’s stock in a transaction on Friday, November 14th. The stock was sold at an average price of $11.11, for a total value of $214,256.35. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Rithm Capital

Institutional investors have recently modified their holdings of the company. Cullen Frost Bankers Inc. bought a new stake in Rithm Capital in the 2nd quarter valued at about $30,000. Bessemer Group Inc. raised its holdings in shares of Rithm Capital by 658.9% during the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 2,306 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in shares of Rithm Capital during the third quarter worth approximately $31,000. Mather Group LLC. bought a new position in Rithm Capital in the 3rd quarter worth approximately $33,000. Finally, Optimum Investment Advisors increased its position in Rithm Capital by 200.0% in the 3rd quarter. Optimum Investment Advisors now owns 3,000 shares of the real estate investment trust’s stock valued at $34,000 after acquiring an additional 2,000 shares during the period. Institutional investors 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.