Rithm Capital (NYSE:RITM) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Rithm Capital (NYSE:RITM) announced its quarterly earnings results on Tuesday. The real estate investment trust reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10, FiscalAI reports. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%.

Rithm Capital Stock Performance

NYSE RITM opened at $9.22 on Tuesday. The firm has a market cap of $5.15 billion, a price-to-earnings ratio of 8.46 and a beta of 1.14. The company has a 50 day moving average of $9.21 and a 200-day moving average of $9.87. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital’s dividend payout ratio is currently 91.74%.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was 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 Securities & Exchange Commission, which is available through the SEC website. 0.57% of the stock is owned by insiders.

Hedge Funds Weigh In On Rithm Capital

Several institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its stake in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock worth $889,000 after purchasing an additional 13,166 shares in the last quarter. NewEdge Advisors LLC increased its stake in shares of Rithm Capital by 5.3% in the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock valued at $359,000 after buying an additional 1,585 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Rithm Capital by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock valued at $17,627,000 after buying an additional 662,585 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Rithm Capital by 14.3% in the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after buying an additional 881 shares during the last quarter. Finally, M&T Bank Corp raised its holdings in shares of Rithm Capital by 13.9% in the second quarter. M&T Bank Corp now owns 26,173 shares of the real estate investment trust’s stock valued at $296,000 after buying an additional 3,200 shares during the last quarter. Institutional investors own 44.92% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently weighed in on RITM. JonesTrading reiterated a “buy” rating and issued a $13.50 price objective on shares of Rithm Capital in a research note on Tuesday, April 28th. Citizens Jmp raised their target price on Rithm Capital from $12.50 to $13.50 and gave the stock a “market outperform” rating in a research report on Wednesday, May 20th. Wall Street Zen lowered Rithm Capital from a “hold” rating to a “sell” rating in a research note on Monday, July 6th. UBS Group lowered 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. Finally, Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, May 26th. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $13.20.

About Rithm Capital

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.