Short Interest in Rithm Capital Corp. (NYSE:RITM) Declines By 17.4%

Rithm Capital Corp. (NYSE:RITM) was the target of a significant decrease in short interest during the month of January. As of January 31st, there was short interest totalling 3,900,000 shares, a decrease of 17.4% from the January 15th total of 4,720,000 shares. Approximately 0.8% of the shares of the company are sold short. Based on an average daily trading volume, of 3,640,000 shares, the short-interest ratio is presently 1.1 days.

Institutional Investors Weigh In On Rithm Capital

Several institutional investors and hedge funds have recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of Rithm Capital during the 4th quarter worth approximately $76,082,000. JPMorgan Chase & Co. lifted its holdings in Rithm Capital by 119.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 4,608,008 shares of the real estate investment trust’s stock valued at $52,301,000 after acquiring an additional 2,504,529 shares during the last quarter. Azora Capital LP lifted its position in shares of Rithm Capital by 107.6% during the 3rd quarter. Azora Capital LP now owns 4,383,821 shares of the real estate investment trust’s stock valued at $49,756,000 after acquiring an additional 2,271,671 shares during the last quarter. Soros Fund Management LLC purchased a new stake in Rithm Capital during the third quarter valued at about $23,835,000. Finally, First Trust Advisors LP grew its position in Rithm Capital by 78.3% during the 4th quarter. First Trust Advisors LP now owns 3,304,999 shares of the real estate investment trust’s stock worth $35,793,000 after purchasing an additional 1,451,829 shares in the last quarter. Institutional investors and hedge funds own 44.92% of the company’s stock.

Rithm Capital Price Performance

Shares of NYSE RITM opened at $12.03 on Friday. Rithm Capital has a 1-year low of $10.36 and a 1-year high of $12.10. The business has a 50-day moving average of $11.23 and a 200-day moving average of $11.16. The company has a debt-to-equity ratio of 1.63, a current ratio of 1.35 and a quick ratio of 1.35. The company has a market capitalization of $6.25 billion, a price-to-earnings ratio of 7.20 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 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.16. Rithm Capital had a return on equity of 18.46% and a net margin of 17.79%. On average, equities analysts anticipate that Rithm Capital will post 1.92 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 8.32%. The ex-dividend date was Tuesday, December 31st. Rithm Capital’s dividend payout ratio is presently 59.88%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Royal Bank of Canada reiterated an “outperform” rating and set a $13.00 price target on shares of Rithm Capital in a research note on Thursday, November 21st. Keefe, Bruyette & Woods upped their target price on shares of Rithm Capital from $13.00 to $13.50 and gave the stock an “outperform” rating in a research report on Tuesday, December 3rd. Wedbush reaffirmed an “outperform” rating and issued a $14.00 price target on shares of Rithm Capital in a report on Thursday, November 7th. Piper Sandler upped their price objective on shares of Rithm Capital from $11.50 to $12.50 and gave the company a “neutral” rating in a research note on Friday, February 7th. Finally, B. Riley raised shares of Rithm Capital to a “strong-buy” rating in a research note on Tuesday, January 7th. One analyst has rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $12.94.

Rithm Capital Company Profile

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.