With a forward dividend & yield of 0.60 and 7.13%, New Residential Investment Corp. [NYSE:NRZ] has active tape with a current price of $8.27 against an analyst price target of 10.25.
For the year, the stock is trading -47.73% and the five-day change stands at 3.69%. As a point of reference, the S&P 500 is trading 0.5% YTD.
Other data to note about the company today is the Recommendation Trend that is leaning toward New Residential Investment Corp. [NRZ] as Strong Buy.
The Bears are coming
Holding a Market Cap of $3.47 billion, New Residential Investment Corp. has seen a trading range over the last year of $2.91-$17.66.
For the last five days, NRZ is up from its last closing price. The average shares trading hands each day is 4.83M, with average 10-day volume coming in at 4.97 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for NRZ. When we apply the Elder Force Index to New Residential Investment Corp., we are seeing an Elder Force Indicator number of -140842.05.
The recent performance of the stock is another area that can tell traders how to proceed. NRZ is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 5.84.
In the last quarter, NRZ made a profit of 177.94 million. New Residential Investment Corp. also saw quarter revenue growth year over year of 21.78%. In addition, the company has operating cash flow of $3.93 billion.
Looking at popular technical indicators, the company’s 5-day moving average is 8.28 compared to the 50-day moving average of 7.85. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. NRZ currently holds a 9-day RSI of 57.78%, while 100-day RSI stands at 47.65%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. NRZ’s 9-day MACD is 0.12 and the company’s 100-day MACD stands at 0.58.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.42% by insiders and 51.03% by institutions.
Over the last six months, insiders have bought 10,000 with the most recent transaction from Tyson Alan L., Director, with a purchase at price 7.72 per share.
Overall, the recommended rating for NRZ is Strong Buy. Currently, the company has 9 analysts watching the stock, and the average quarterly earnings estimate is 0.38. Quarterly revenue estimates are averaging 640.41M with the high estimate reaching 737.58M and the low at 541M.
To review, the current 1-year target estimate is sitting at 10.25, while the current price 8.27. Based on this, we expect the stock to rise considering the aforementioned fundamentals.