Principal Financial Group Inc. Acquires 2,678,431 Shares of Rithm Capital Corp. $RITM

Principal Financial Group Inc. increased its stake in Rithm Capital Corp. (NYSE:RITM) by 17,546.2% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 2,693,696 shares of the real estate investment trust’s stock after purchasing an additional 2,678,431 shares during the quarter. Principal Financial Group Inc. owned approximately 0.48% of Rithm Capital worth $25,536,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Teachers Retirement System of The State of Kentucky bought a new stake in Rithm Capital during the first quarter worth approximately $1,308,000. International Assets Investment Management LLC grew its stake in shares of Rithm Capital by 143.0% during the first quarter. International Assets Investment Management LLC now owns 63,981 shares of the real estate investment trust’s stock valued at $606,000 after buying an additional 37,646 shares during the last quarter. Diversify Wealth Management LLC purchased a new stake in shares of Rithm Capital in the first quarter worth approximately $483,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS purchased a new stake in Rithm Capital in the first quarter worth $1,303,000. Finally, Fifth Third Bancorp purchased a new position in Rithm Capital in the 1st quarter worth about $65,000. 44.92% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

RITM has been the topic of a number of recent research reports. UBS Group dropped their price target on Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research report on Friday, April 10th. Citigroup reaffirmed an “outperform” rating on shares of Rithm Capital in a research report on Wednesday, May 20th. Compass Point assumed coverage on shares of Rithm Capital in a report on Monday, June 8th. They set a “buy” rating and a $14.00 price objective on the stock. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, May 26th. Finally, Capital One Financial set a $12.50 price target on shares of Rithm Capital in a research report on Thursday, April 9th. Ten analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, Rithm Capital has a consensus rating of “Moderate Buy” and a consensus price target of $13.20.

Rithm Capital Trading Down 1.4%

RITM opened at $9.19 on Tuesday. The company’s 50 day simple moving average is $9.23 and its two-hundred day simple moving average is $9.94. The firm has a market capitalization of $5.13 billion, a price-to-earnings ratio of 8.43 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.28 and a quick ratio of 1.28. Rithm Capital Corp. has a 1-year low of $8.43 and a 1-year high of $12.74.

Rithm Capital (NYSE:RITM) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Analysts expect that Rithm Capital Corp. will post 2.23 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 2nd will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 10.9%. The ex-dividend date is Thursday, July 2nd. Rithm Capital’s dividend payout ratio (DPR) is currently 91.74%.

Insider Activity

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total value of $748,528.50. Following the transaction, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. The trade was a 64.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.57% of the company’s stock.

Rithm Capital Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.