RITM Should I Buy
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Rithm Capital Corp (RITM) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock shows some positive technical indicators and analyst ratings remain favorable, the company's recent financial performance is weak, and hedge funds are aggressively selling. Given the lack of significant positive catalysts and the absence of Intellectia Proprietary Trading Signals, it would be prudent to hold off on purchasing this stock until more favorable conditions arise.
The MACD histogram is positive at 0.0959 and expanding, indicating a bullish momentum. RSI is at 69.313, which is neutral but nearing overbought territory. Moving averages are converging, showing no clear trend. Key resistance levels are at 9.567 and 9.852, with support at 8.642 and 8.357. The stock is trading near resistance levels, suggesting limited upside in the short term.
The stock shows a 70% chance of a slight increase in the next month.
Hedge funds are aggressively selling, with a 284.34% increase in selling activity last quarter. The company's financial performance in Q4 2025 was poor, with revenue, net income, and EPS all showing significant YoY declines. No recent news or congress trading data to act as a positive catalyst.
In Q4 2025, revenue dropped by 24.86% YoY to $1.36 billion. Net income fell by 79.82% YoY to $53.1 million, and EPS declined by 82% YoY to $0.09. Gross margin also decreased by 8.34% YoY to 68.87%. These figures indicate significant financial deterioration.
Analysts maintain a generally positive outlook with Buy and Overweight ratings. However, price targets have been lowered slightly, reflecting cautious optimism. Piper Sandler and UBS have reduced their price targets to $14 and $15, respectively, citing sector volatility and recent financial results.
