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Rithm Capital Expands with Strategic Moves Amid Market Developments

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 1/16/2026, 4:09 pm ET 1/16/2026, 4:09 pm ET | 5 min 5 min read
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Rithm Capital Corp.’s stocks have been trading up by 3.61 percent amid optimistic analyst earnings forecast.

Finance industry expert:

Analyst sentiment – positive

  1. Market Position & Fundamentals: Rithm Capital Corp (RITM) presents a complex financial position. With a pretax profit margin of 22% and a total profit margin of 17.59%, the company showcases robust profitability relative to its revenue of approximately $5.05 billion. Despite a negative cash flow per share standing at -5.29, the firm maintains a competitive P/E ratio of 7.71, indicating a potential undervaluation in the market. The company’s debt structure, represented by a total debt to equity ratio of 3.87 and a leverage ratio of 6.6, suggests significant financial commitments, affirming the importance of sustained revenue generation to ensure financial agility.

  2. Technical Analysis & Trading Strategy: Analyzing RITM’s recent price action, the stock shows a slow upwards trend, culminating in a closing price of $11.77 on January 16th with consistent support around the $11.20 level in preceding days. The narrow trading channel suggests a consolidation period, with clear resistance at approximately $11.77. Given the volatility and volume data, a recommended strategy is to buy on confirmation of a breakout above $11.80, targeting a move to $12.00-$12.20. Conversely, should RITM fail to maintain above $11.77, a short position with a target of $11.20 could be considered, provided there is corresponding support from volume spikes indicating directional confidence.

  3. Catalysts & Outlook: Rithm Capital’s recent strategic moves, including the acquisition of Paramount Group and a public offering of preferred shares, reinforce its commitment to expanding asset management capabilities and enhancing shareholder value. Announcements of maintaining dividends show confidence in sustained cash flows. Comparing to the Mortgage REITs sector, RITM’s initiatives position it well above average, although market behavior post-announcement of the stock split indicates some investor discomfort. However, UBS’s coverage and a $16 price target signal institutional confidence, emphasizing a positive longer-term trajectory. Support at $11.20 and breakout resistance near $11.80 are crucial levels, with potential upward momentum hinging on successful capital restructuring.

Candlestick Chart

Weekly Update Jan 12 – Jan 16, 2026: On Friday, January 16, 2026 Rithm Capital Corp. stock [NYSE: RITM] is trending up by 3.61%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Rithm Capital’s recent financial endeavors indicate strategic positioning aimed at reinforcing its market standing. The company’s divestiture in creating a tech-forward approach with the integration of AI into mortgage underwriting signifies a robust thrust to stay competitive. Moreover, offering Series F Preferred Stock sustains capital influx designed for strategic investments and sustained corporate growth.

The latest pricing of their preferred stock, aligning with a liquidation preference set at $25 per share, underpins a strong market strategy. With expected net proceeds of approximately $250M redirected towards investments and broader corporate objectives, the initiative reflects sound financial planning and effective market navigation.

More Breaking News

Share prices have exhibited market sensitivity, encapsulated in a recent downtrend but buoyed by structural corporate advances, such as the successful acquisition of Paramount Group. This acquisition not only broadens asset management scope but also aligns with projected earning potential in asset management capabilities. The company’s strategic movement into digital asset integration for mortgage portfolio enhancement represents another pivotal progression, unfortunately confronted with a modest stock dip. However, ongoing innovations and robust financial conditions provide a resilient foundation to capitalize on market opportunities.

Conclusion

Rithm Capital’s recent endeavors exemplify a robust and forward-looking corporate strategy. The acquisition of Paramount Group and exploration into AI and cryptocurrency integration displays innovative aspirations. These strategic steps provide a template for growth and competitiveness in evolving market dynamics. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” This perspective underscores Rithm Capital’s focus on not just generating substantial financial flows but also maintaining and growing their financial base through astute trading strategies. Concurrently, financial maneuvers through preferred stock offerings demonstrate an aggressive pursuit of financial resilience and adaptability. While recent market responses reflect varied trends, the company’s multidimensional financial health provides substantial avenues to seize emerging market opportunities effectively. The narrative of Rithm Capital is one of calculated growth, tech-driven innovation, and prudent financial management, poised to further solidify its industry position and reap substantial long-term benefits.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”