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Rithm Capital Announces Major Moves in 2026

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 1/16/2026, 4:39 pm ET 1/16/2026, 4:39 pm ET | 5 min 5 min read
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Rithm Capital Corp.’s stocks have been trading up by 3.44 percent, driven by positive market sentiment.

Finance industry expert:

Analyst sentiment – positive

Rithm Capital Corp. (RITM) maintains a resilient market position despite its mixed financial indicators. The company’s pretax profit margin of 22% and total profit margin of 17.59% illustrate reasonable profitability amidst a revenue generation of $5.05 billion. Nonetheless, a concerning aspect is the negative free cash flow and a high total debt to equity ratio of 3.87, reflecting significant leverage. Its book value per share of $12.83 against a price-to-book ratio of 0.87 suggests undervaluation relative to assets, offering potential value to investors. However, the return on equity at 9.54% and return on assets at 1.75% indicate average utilization of equity and assets to generate profits.

Technically, Rithm Capital exhibits a consolidating trend with relative stability, as observed in recent weekly price actions displaying narrow fluctuations between $11.15 and $11.77. The dominant trend is sideways with slight bullish bias noted at the close of $11.6665. This consolidation mirrors indecision but suggests accumulating interest at current levels, complemented by the nearing support at $11.15 and resistance at $11.77. An actionable trading strategy might involve buying at dips near $11.20 with a target sell range at the $11.70 resistance level, awaiting a breakout or breakdown for directional trends. Observing volume increases during these price actions can enhance entry and exit strategies.

Recent corporate developments, such as the acquisition of Paramount Group and strategic ventures into AI-powered mortgage solutions, highlight Rithm’s progressive agenda to enhance its competitive edge. The $250 million Series F Preferred Stock offering signals robust capital structuring and commitment to growth initiatives. Compared to industry benchmarks, Rithm’s actions project a positive outlook against the backdrop of finance and mortgage REITs performance. UBS’s vote of confidence with a ‘Buy’ rating and a $16 price target further underscores potential upside. With support firmly rooted near $11.15 and a reasonable bullish outlook, RITM appears poised for growth despite challenges. Overall sentiment leans towards positive, based on strategic expansions and solidifying financial footing.

Candlestick Chart

Weekly Update Jan 12 – Jan 16, 2026: On Friday, January 16, 2026 Rithm Capital Corp. stock [NYSE: RITM] is trending up by 3.44%! 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 activities reflect a strategic plan to augment capital and extend its market reach. The declared dividends for Q4 signal a strong financial base and confidence in sustaining shareholder value. The acquisition of the Paramount Group stands as a crucial initiative to boost asset management, promising more consistent revenue streams. Additionally, Newrez’s venture to incorporate AI in mortgage solutions suggests a forward-thinking approach, likely increasing operational efficiencies.

Analyzing recent stock movements, RITM’s sequence from opening at $11.4 to closing at $11.66 underscores moderate fluctuations, possibly tied to investor reactions to the preferred stock offering and dividend announcements. It’s vital to note the offering is poised to result in approximately $250 million, enhancing corporate liquidity and propelling future investments. Financial ratios display a favorable price-to-earnings ratio of 7.71, indicating the stock’s appeal in value investing.

More Breaking News

In essence, Rithm’s financial statements from Q3 reveal crucial transitions: significant capital allocations, strategic asset management enhancements, and assertive market positioning. Such moves are designed to navigate cyclical challenges while leveraging debt efficiently. Despite the evident high leverage ratio at 6.6, Rithm’s operational strategies and investment maneuvers appear well-calibrated to manage risks while unlocking growth potential in 2026 and beyond.

Conclusion

Rithm Capital’s ongoing financial maneuvers reveal a strategic focus aimed at harnessing growth while fortifying its market position. The combination of innovative approaches—like integrating AI in mortgage underwriting and accommodating crypto assets—presents fresh avenues for disrupting traditional markets. Meanwhile, the consolidation of assets through acquisitions and strategic offerings reflects a disciplined approach to expansion and capital utilization.

These decisive steps align with the overarching goal of sustaining robust shareholder value and adapting to new financial paradigms. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This principle resonates with Rithm Capital’s strategies, underscoring the importance of agility in trading environments. As Rithm Capital navigates these initiatives, stakeholders and traders can anticipate continued momentum in asset management and sustained financial returns, positioning the company for influential economic engagements in 2026 and beyond.

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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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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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”