Rithm Capital (NYSE:RITM) Stock Crosses Below 200 Day Moving Average – Should You Sell?

Rithm Capital Corp. (NYSE:RITM)’s share price passed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $11.56 and traded as low as $11.34. Rithm Capital shares last traded at $11.75, with a volume of 12,188,552 shares changing hands.

Analyst Ratings Changes

Several research analysts have issued reports on RITM shares. Jones Trading reissued a “buy” rating and set a $13.50 price objective on shares of Rithm Capital in a research report on Thursday, October 30th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Rithm Capital in a research note on Monday, December 29th. UBS Group assumed coverage on Rithm Capital in a research report on Thursday, January 8th. They issued a “buy” rating and a $16.00 price target on the stock. Wedbush initiated coverage on Rithm Capital in a research note on Monday, December 15th. They issued an “outperform” rating and a $14.00 target price on the stock. Finally, Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. Eight equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Rithm Capital has an average rating of “Moderate Buy” and an average price target of $14.44.

Rithm Capital Stock Up 3.5%

The company has a debt-to-equity ratio of 1.52, a quick ratio of 0.45 and a current ratio of 0.45. The company has a market capitalization of $6.51 billion, a PE ratio of 8.10 and a beta of 1.21. The firm’s 50-day simple moving average is $11.18 and its 200 day simple moving average is $11.56.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings data on Thursday, October 30th. The real estate investment trust reported $0.54 EPS 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 analysts’ expectations of $1.07 billion. As a group, equities research analysts forecast that Rithm Capital Corp. will post 1.93 earnings per share for the current year.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be given a $0.25 dividend. The ex-dividend date is Wednesday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 8.5%. Rithm Capital’s dividend payout ratio is currently 68.97%.

Insiders Place Their Bets

In other Rithm Capital news, CEO Michael Nierenberg sold 301,548 shares of the firm’s stock in a transaction 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider David Zeiden sold 19,285 shares of the business’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $11.11, for a total transaction of $214,256.35. The SEC filing for this sale provides additional information. 0.44% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rithm Capital

Hedge funds have recently made changes to their positions in the business. State Street Corp lifted its position in Rithm Capital by 11.5% during the second quarter. State Street Corp now owns 10,178,853 shares of the real estate investment trust’s stock worth $117,426,000 after buying an additional 1,052,130 shares during the period. Kingstone Capital Partners Texas LLC acquired a new position in shares of Rithm Capital during the 2nd quarter valued at about $96,027,000. Geode Capital Management LLC lifted its holdings in shares of Rithm Capital by 1.1% during the 2nd quarter. Geode Capital Management LLC now owns 8,991,146 shares of the real estate investment trust’s stock worth $101,528,000 after acquiring an additional 98,307 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Rithm Capital by 80.7% in the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock worth $89,878,000 after acquiring an additional 3,524,330 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Rithm Capital in the second quarter worth approximately $72,762,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

Rithm Capital Company Profile

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.