Bank of New York Mellon Corp Boosts Stock Holdings in Rithm Capital Corp. $RITM

Key Points

• Bank of New York Mellon increased its Rithm Capital stake by 71.8% in the first quarter, owning 3.39 million shares valued at approximately $32.1 million. Institutional investors collectively hold 44.92% of Rithm’s stock.
• Analysts maintain a generally positive outlook, with 10 Buy ratings and one Sell rating; the consensus target price is $13.20 versus a recent share price of $9.11.
• Rithm announced a quarterly dividend of $0.25 per share, equating to a $1.00 annualized payout and an 11.0% yield. Its latest earnings missed estimates slightly, reporting $0.51 per share against expectations of $0.53.

Bank of New York Mellon Corp raised its stake in Rithm Capital Corp. (NYSE:RITM - Free Report) by 71.8% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 3,390,135 shares of the real estate investment trust's stock after acquiring an additional 1,416,415 shares during the period. Bank of New York Mellon Corp owned approximately 0.61% of Rithm Capital worth $32,138,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Norges Bank bought a new stake in shares of Rithm Capital in the fourth quarter worth about $77,067,000. Qube Research & Technologies Ltd increased its stake in Rithm Capital by 80.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after acquiring an additional 3,524,330 shares during the last quarter. Principal Financial Group Inc. raised its holdings in shares of Rithm Capital by 17,546.2% during the 1st 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. UBS Group AG raised its holdings in shares of Rithm Capital by 127.9% during the 3rd quarter. UBS Group AG now owns 3,718,822 shares of the real estate investment trust's stock worth $42,357,000 after acquiring an additional 2,087,282 shares in the last quarter. Finally, Balyasny Asset Management L.P. boosted its position in shares of Rithm Capital by 52.1% during the 3rd quarter. Balyasny Asset Management L.P. now owns 5,939,093 shares of the real estate investment trust's stock valued at $67,646,000 after acquiring an additional 2,033,973 shares during the last quarter. Hedge funds and other institutional investors own 44.92% of the company's stock.

Insider Activity

In other news, Director David Saltzman sold 80,922 shares of the company's stock in a transaction dated 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 in the company, valued at approximately $409,294. This represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 0.57% of the company's stock.

Wall Street Analyst Weigh In

RITM has been the topic of several recent research reports. JonesTrading restated a "buy" rating and set a $13.50 target price on shares of Rithm Capital in a research report on Tuesday, April 28th. Capital One Financial set a $12.50 price target on Rithm Capital in a research report on Thursday, April 9th. Citizens Jmp boosted their price objective on Rithm Capital from $12.50 to $13.50 and gave the stock a "market outperform" rating in a research note on Wednesday, May 20th. Weiss Ratings downgraded Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, May 26th. Finally, UBS Group lowered their price objective on Rithm Capital from $15.00 to $14.50 and set a "buy" rating for the company in a research note on Friday, April 10th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $13.20.

Rithm Capital Stock Down 0.2%

Shares of NYSE:RITM opened at $9.11 on Monday. The firm has a market capitalization of $5.08 billion, a PE ratio of 8.35 and a beta of 1.14. The business has a 50 day simple moving average of $9.21 and a two-hundred day simple moving average of $9.88. Rithm Capital Corp. has a 1 year low of $8.43 and a 1 year high of $12.74. 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 (NYSE:RITM - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.02). The business had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. On average, equities analysts predict that Rithm Capital Corp. will post 2.23 EPS for the current year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders 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 dividend yield of 11.0%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital's payout ratio is currently 91.74%.

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.

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