Rithm Capital Corp. (NYSE:RITM) finished Thursday with a subtraction of -$0.13 to close at $10.14, a downside of -1.27 percent. An average of 3,421,340 shares of common stock have been traded in the last five days. There was a gain of $0.12 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 4,293,490 shares traded, while the 50-day average volume stands at 4,053,758.
RITM stock has increased by 7.87% in the last month. The company shares reached their 1-month lowest point of $9.31 on 07/11/23. With the stock rallying to its 52-week high on 08/10/23, shares of the company touched a low of $6.86 and a high of $10.34 in 52 weeks. It has reached a new high 22 times so far this year and achieved 24.11% or $1.97 in price. In spite of this, the price is down -1.93% from the 52-week high.
Valuation Metrics
Rithm Capital Corp. (RITM) has a trailing price-to-earnings (P/E) ratio of 17.88. The stock’s beta is 1.78. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.91, the price-to-book (PB) ratio at 0.86, and the price-to-cash flow ratio at 0.81.
The company has a payout ratio of 54.10%. The company’s most recent quarterly dividend payment was $0.25 a share, without any change from last year. Its latest increase dividend $0.05 reported on Monday August 23 2021.
Financial Health
Further, the company has a long term debt to equity ratio of 1.82 and a total debt to equity ratio of 3.91 for the quarter ending June 29. Its gross profit as reported stood at $2.05 billion compared to revenue of $3.64 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Rithm Capital Corp.’s return on assets was 2.60%.
Earnings Surprise
For the three-month period that ended June 29, Rithm Capital Corp. had $12.76 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $357.4 million in the quarter, while revenues of $68.85 million were grew 100.92%. The analyst consensus anticipated Rithm Capital Corp.’s latest quarter earnings to come in at $0.35 per share, but it turned out to be $0.62, a 77.10% surprise. For the quarter, EBITDA amounted to $752.93 million. At the end of the quarter ending June 29, Rithm Capital Corp.’s stock balance sheet showed total debt was $23.74 billion. Shareholders own equity worth $483.32 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Rithm Capital Corp. (RITM) price momentum. RSI 9-day as of the close on 10 August was 55.66%, suggesting the stock is Neutral, with historical volatility in this time frame at 18.13%.
As of today, RITM’s price is $10.23 +1.20% or $0.12 from its 5-day moving average. RITM is currently trading +6.51% higher than its 20-day SMA and +31.35% higher than its 100-day SMA. However, the stock’s current price level is +22.61% above the SMA50 and +31.69% above the SMA200.
The stochastic %K and %D were 83.16% and 87.98%, respectively, and the average true range (ATR) was 0.19. With the 14-day stochastic at 67.21% and the average true range at 0.19, the RSI (14) stands at 59.38%. The stock has reached 0.06 on the 9-day MACD Oscillator while the 14-day reading was at 0.07.
Analyst Ratings
B. Riley Securities launched coverage on Rithm Capital Corp. (NYSE: RITM) in its analyst report released on December 16, 2022. The firm assigned the stock a Buy rating. The consensus rating for Rithm Capital Corp. (RITM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RITM, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 9 others rate it as a “buy”.
What is RITM’s price target for the next 12 months?
Analysts predict a range of price targets between $10.50 and $13.00, with a median target of $11.50. Taking a look at these predictions, the average price target given by analysts for Rithm Capital Corp. (RITM) stock is $11.50.
