SMH Capital Advisors Inc. Buys New Holdings in Rithm Capital Corp. $RITM

SMH Capital Advisors Inc. bought a new stake in Rithm Capital Corp. (NYSE:RITM) in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 66,158 shares of the real estate investment trust’s stock, valued at approximately $591,000. Rithm Capital makes up about 2.2% of SMH Capital Advisors Inc.’s investment portfolio, making the stock its 12th largest position.

Several other hedge funds also recently bought and sold shares of RITM. Wellington Management Group LLP grew its holdings in shares of Rithm Capital by 14.4% in the 2nd quarter. Wellington Management Group LLP now owns 11,616,077 shares of the real estate investment trust’s stock valued at $109,075,000 after buying an additional 1,466,315 shares during the period. Bank of New York Mellon Corp raised its stake in Rithm Capital by 71.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,390,135 shares of the real estate investment trust’s stock worth $32,138,000 after buying an additional 1,416,415 shares during the period. Royal Bank of Canada lifted its holdings in Rithm Capital by 12.5% during the first quarter. Royal Bank of Canada now owns 2,974,882 shares of the real estate investment trust’s stock worth $28,202,000 after acquiring an additional 331,513 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in Rithm Capital by 17,546.2% during the first quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust’s stock worth $25,536,000 after acquiring an additional 2,678,431 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Rithm Capital during the second quarter worth about $22,001,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the sale, the director directly owned 82,259 shares of the company’s stock, valued at $837,396.62. The trade was a 15.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.57% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on RITM. Wedbush began coverage on Rithm Capital in a research note on Thursday, October 22nd. They issued an “outperform” rating and a $10.00 target price for the company. Keefe, Bruyette & Woods lifted their price objective on Rithm Capital from $12.50 to $13.00 and gave the company an “outperform” rating in a report on Tuesday, October 27th. BTIG Research decreased their price objective on Rithm Capital from $13.00 to $12.00 and set a “buy” rating for the company in a research report on Monday, October 12th. UBS Group decreased their price objective on Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a research report on Friday, August 21st. Finally, Wall Street Zen raised Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Ten research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $12.80.

Rithm Capital Price Performance

Shares of RITM opened at $9.46 on Tuesday. The company has a quick ratio of 0.58, a current ratio of 0.83 and a debt-to-equity ratio of 2.12. Rithm Capital Corp. has a twelve month low of $8.31 and a twelve month high of $12.15. The stock has a market capitalization of $5.28 billion, a P/E ratio of 3.86, a P/E/G ratio of 0.57 and a beta of 1.16. The company has a 50 day moving average of $9.29 and a 200-day moving average of $9.71.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings data on Friday, October 23rd. The real estate investment trust reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05. Rithm Capital had a net margin of 8.71% and a return on equity of 20.03%. The business had revenue of $1.76 billion for the quarter, compared to analyst estimates of $1.47 billion. As a group, equities research analysts forecast that Rithm Capital Corp. will post 2.32 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Thursday, October 1st were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 10.6%. The ex-dividend date was Thursday, October 1st. Rithm Capital’s payout ratio is presently 158.73%.

Rithm Capital Profile

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.