BlueCrest Capital Management Ltd Boosts Position in Rithm Capital Corp. $RITM

Key Points

• BlueCrest Capital Management increased its Rithm Capital stake by 37.8% in the second quarter, purchasing 561,819 additional shares for a total of 2.05 million shares valued at approximately $19.2 million. Institutional investors collectively own 44.92% of Rithm’s stock.
• Rithm Capital reported quarterly EPS of $0.60, beating the $0.50 consensus estimate, and maintains a quarterly dividend of $0.25, or $1.00 annualized, yielding about 10.1%.
• Analysts maintain a generally positive view, with 10 Buy ratings and one Hold rating; the stock has a “Moderate Buy” consensus and an average price target of $13.15 versus a recent price of $9.86.

BlueCrest Capital Management Ltd raised its position in Rithm Capital Corp. (NYSE:RITM - Free Report) by 37.8% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 2,046,427 shares of the real estate investment trust's stock after purchasing an additional 561,819 shares during the period. Rithm Capital comprises approximately 0.6% of BlueCrest Capital Management Ltd's portfolio, making the stock its 22nd biggest holding. BlueCrest Capital Management Ltd owned 0.37% of Rithm Capital worth $19,216,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Wellington Management Group LLP boosted its position 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 worth $109,075,000 after buying an additional 1,466,315 shares in the last quarter. State Street Corp raised its position in Rithm Capital by 5.3% during the fourth quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock worth $117,701,000 after acquiring an additional 530,607 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Rithm Capital by 4.8% in the fourth quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust's stock valued at $104,904,000 after purchasing an additional 443,144 shares in the last quarter. Qube Research & Technologies Ltd lifted its holdings in shares of Rithm Capital by 80.7% in the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock valued at $89,878,000 after purchasing an additional 3,524,330 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Rithm Capital in the fourth quarter valued at approximately $77,067,000. Hedge funds and other institutional investors own 44.92% of the company's stock.

Rithm Capital Stock Performance

Shares of RITM opened at $9.86 on Thursday. Rithm Capital Corp. has a 1 year low of $8.43 and a 1 year high of $12.68. The company's 50 day simple moving average is $9.77 and its 200 day simple moving average is $9.63. The company has a market capitalization of $5.50 billion, a price-to-earnings ratio of 16.43, a PEG ratio of 0.63 and a beta of 1.12. The company has a debt-to-equity ratio of 2.19, a quick ratio of 0.76 and a current ratio of 0.76.

Rithm Capital (NYSE:RITM - Get Free Report) last released its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, topping the consensus estimate of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. On average, sell-side analysts predict that Rithm Capital Corp. will post 2.26 EPS for the current year.

Rithm Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.1%. Rithm Capital's payout ratio is currently 166.67%.

Insider Activity at Rithm Capital

In related news, Director Peggy Hebard sold 14,520 shares of the company's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the transaction, the director directly owned 82,259 shares in the company, valued at approximately $837,396.62. This represents a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.57% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

RITM has been the subject of several research reports. Wall Street Zen upgraded Rithm Capital from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. BTIG Research lowered their target price on Rithm Capital from $16.00 to $13.00 and set a "buy" rating on the stock in a report on Tuesday, June 16th. Piper Sandler dropped their price target on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating for the company in a research report on Thursday, July 2nd. UBS Group cut their price target on Rithm Capital from $14.50 to $14.00 and set a "buy" rating for the company in a report on Friday, August 21st. Finally, Compass Point started coverage on Rithm Capital in a research report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective on the stock. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $13.15.

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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