Rithm Capital Corp. Declares Quarterly Dividend of $0.25 (NYSE:RITM)

Key Points

• Rithm Capital declared a quarterly dividend of $0.25 per share, payable October 30 to shareholders of record as of October 1. The dividend implies a $1.00 annualized payout and a 10.5% yield.
• The dividend appears supported by earnings, with a 46.5% payout ratio and analysts expecting approximately $2.29 in earnings per share next year, implying a projected payout ratio of 43.7%.
• Rithm Capital reported quarterly EPS of $0.60, exceeding analysts’ $0.50 estimate. Shares opened at $9.49, while institutional investors own 44.92% of the company.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) declared a quarterly dividend on Thursday, September 17th. Stockholders of record on Thursday, October 1st will be paid a dividend of 0.25 per share by the real estate investment trust on Friday, October 30th. This represents a c) dividend on an annualized basis and a dividend yield of 10.5%. The ex-dividend date of this dividend is Thursday, October 1st.

Rithm Capital has increased its dividend payment by an average of 0.1%per year over the last three years. Rithm Capital has a dividend payout ratio of 46.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Rithm Capital to earn $2.29 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 43.7%.

Rithm Capital Price Performance

Shares of RITM opened at $9.49 on Friday. The business's fifty day moving average is $9.83 and its 200 day moving average is $9.60. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.46. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 2.19. The stock has a market cap of $5.30 billion, a P/E ratio of 15.81, a P/E/G ratio of 0.60 and a beta of 1.12.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. Sell-side analysts anticipate that Rithm Capital will post 2.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director owned 82,259 shares in the company, valued at approximately $837,396.62. This trade represents a 15.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Rithm Capital

Institutional investors have recently modified their holdings of the business. Altshuler Shaham Ltd lifted its holdings in shares of Rithm Capital by 100.0% in the first quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust's stock worth $34,000 after buying an additional 1,800 shares in the last quarter. Bogart Wealth LLC increased its holdings in shares of Rithm Capital by 108.5% in the 1st quarter. Bogart Wealth LLC now owns 4,120 shares of the real estate investment trust's stock worth $39,000 after buying an additional 2,144 shares during the last quarter. Sound Income Strategies LLC bought a new position in Rithm Capital in the first quarter valued at $41,000. Kelly Lawrence W & Associates Inc. CA bought a new position in shares of Rithm Capital during the 2nd quarter valued at about $42,000. Finally, Ameritas Advisory Services LLC purchased a new position in shares of Rithm Capital during the second quarter worth approximately $43,000. 44.92% of the stock is owned by institutional investors.

About Rithm Capital

Rithm Capital Corporation NYSE: RITM is a real estate investment trust that focuses on investments and operating businesses tied to the residential mortgage and real estate markets. The company seeks to generate income from mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other related assets.

Rithm also owns and operates businesses involved in mortgage origination, servicing and related financial services. Its platform includes Newrez, a mortgage company that provides loan origination, servicing and associated services to homeowners and borrowers in the United States.

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