The stock price of Rithm Capital Corporation (NYSE: RITM) has plunged by -1.66 when compared to previous closing price of 10.84, but the company has seen a -1.02% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-17 that We’ve got three shares where big yields are offset by one flaw or another. I recently closed out my position in one of these shares for a gain of more than 40%. Great choice about 17 months ago. Not as great today. I’ll include an alternative from my portfolio that still offers an attractive yield for investors.
Is It Worth Investing in Rithm Capital Corporation (NYSE: RITM) Right Now?
The price-to-earnings ratio for Rithm Capital Corporation (NYSE: RITM) is above average at 8.94x. The 36-month beta value for RITM is also noteworthy at 1.78. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 4 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
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The public float for RITM is 516.83M, and at present, short sellers hold a 1.07% of that float. The average trading volume of RITM on October 21, 2024 was 3.89M shares.
RITM’s Market Performance
The stock of Rithm Capital Corporation (RITM) has seen a -1.02% decrease in the past week, with a -10.27% drop in the past month, and a -7.87% fall in the past quarter. The volatility ratio for the week is 1.30%, and the volatility levels for the past 30 days are at 1.38% for RITM. The simple moving average for the past 20 days is -2.37% for RITM’s stock, with a -3.58% simple moving average for the past 200 days.
Analysts’ Opinion of RITM
Many brokerage firms have already submitted their reports for RITM stocks, with UBS repeating the rating for RITM by listing it as a “Buy.” The predicted price for RITM in the upcoming period, according to UBS is $12.50 based on the research report published on December 06, 2023 of the previous year 2023.
B. Riley Securities, on the other hand, stated in their research note that they expect to see RITM reach a price target of $12. The rating they have provided for RITM stocks is “Buy” according to the report published on December 16th, 2022.
Piper Sandler gave a rating of “Neutral” to RITM, setting the target price at $9 in the report published on September 30th of the previous year.
RITM Trading at -5.85% from the 50-Day Moving Average
After a stumble in the market that brought RITM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.31% of loss for the given period.
Volatility was left at 1.38%, however, over the last 30 days, the volatility rate increased by 1.30%, as shares sank -9.01% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.95% lower at present.
During the last 5 trading sessions, RITM fell by -0.47%, which changed the moving average for the period of 200-days by +4.58% in comparison to the 20-day moving average, which settled at $10.92. In addition, Rithm Capital Corporation saw -0.19% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RITM starting from Rithm Capital Corp., who purchase 29,664,827 shares at the price of $12.70 back on Nov 17 ’23. After this action, Rithm Capital Corp. now owns 1,000 shares of Rithm Capital Corporation, valued at $376,743,303 using the latest closing price.
Stock Fundamentals for RITM
Current profitability levels for the company are sitting at:
- 0.25 for the present operating margin
- 0.7 for the gross margin
The net margin for Rithm Capital Corporation stands at 0.28. The total capital return value is set at 0.02. Equity return is now at value 9.28, with 1.77 for asset returns.
Based on Rithm Capital Corporation (RITM), the company’s capital structure generated 0.81 points at debt to capital in total, while cash flow to debt ratio is standing at -0.04. The debt to equity ratio resting at 4.35. The interest coverage ratio of the stock is 0.35.
Currently, EBITDA for the company is -223.27 million with net debt to EBITDA at 51.34. When we switch over and look at the enterprise to sales, we see a ratio of 15.33. The receivables turnover for the company is 0.39for trailing twelve months and the total asset turnover is 0.06.
Conclusion
In summary, Rithm Capital Corporation (RITM) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
