Citigroup Inc. Purchases 252,487 Shares of Rithm Capital Corp. $RITM

Key Points

• Citigroup Inc. increased its stake in Rithm Capital Corp. by 72.5% during the first quarter, owning a total of 600,893 shares valued at approximately $6.88 million.
• Rithm Capital reported $0.54 earnings per share for the latest quarter, exceeding estimates, while also announcing a quarterly dividend of $0.25.
• Eight analysts rated Rithm Capital as a "Buy" with a consensus price target of $14.00, reflecting positive market sentiment toward the stock.

Citigroup Inc. grew its holdings in Rithm Capital Corp. (NYSE:RITM - Free Report) by 72.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 600,893 shares of the real estate investment trust's stock after purchasing an additional 252,487 shares during the period. Citigroup Inc. owned about 0.11% of Rithm Capital worth $6,880,000 as of its most recent SEC filing.

A number of other large investors also recently made changes to their positions in RITM. AlphaCore Capital LLC grew its stake in shares of Rithm Capital by 5.5% in the 1st quarter. AlphaCore Capital LLC now owns 33,241 shares of the real estate investment trust's stock valued at $381,000 after buying an additional 1,741 shares in the last quarter. PNC Financial Services Group Inc. lifted its holdings in shares of Rithm Capital by 100.9% during the first quarter. PNC Financial Services Group Inc. now owns 11,950 shares of the real estate investment trust's stock worth $137,000 after buying an additional 6,002 shares during the last quarter. Moors & Cabot Inc. lifted its holdings in shares of Rithm Capital by 10.7% during the first quarter. Moors & Cabot Inc. now owns 89,085 shares of the real estate investment trust's stock worth $1,020,000 after buying an additional 8,626 shares during the last quarter. US Bancorp DE lifted its holdings in shares of Rithm Capital by 13.4% during the first quarter. US Bancorp DE now owns 36,812 shares of the real estate investment trust's stock worth $421,000 after buying an additional 4,354 shares during the last quarter. Finally, Harbour Investments Inc. raised its stake in shares of Rithm Capital by 3.2% in the first quarter. Harbour Investments Inc. now owns 107,466 shares of the real estate investment trust's stock valued at $1,230,000 after purchasing an additional 3,350 shares in the last quarter. Institutional investors and hedge funds own 44.92% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently commented on RITM. Keefe, Bruyette & Woods upped their target price on Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a research note on Tuesday, July 29th. Wedbush restated an "outperform" rating and set a $14.00 target price on shares of Rithm Capital in a report on Wednesday, August 6th. Jones Trading raised their price target on Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a report on Tuesday, July 29th. Piper Sandler upgraded Rithm Capital from a "neutral" rating to an "overweight" rating and raised their price target for the company from $12.50 to $14.00 in a report on Monday, April 28th. Finally, BTIG Research restated a "buy" rating and set a $16.00 target price on shares of Rithm Capital in a report on Friday, April 25th. One research analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $14.00.

Rithm Capital Stock Up 0.1%

RITM stock traded up $0.0150 during mid-day trading on Wednesday, reaching $12.3350. The company had a trading volume of 3,180,096 shares, compared to its average volume of 4,560,056. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. Rithm Capital Corp. has a 52 week low of $9.13 and a 52 week high of $12.59. The stock has a 50 day simple moving average of $11.82 and a two-hundred day simple moving average of $11.47. The company has a market capitalization of $6.54 billion, a price-to-earnings ratio of 9.49 and a beta of 1.25.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its earnings results on Monday, July 28th. The real estate investment trust reported $0.54 EPS for the quarter, topping the consensus estimate of $0.51 by $0.03. Rithm Capital had a return on equity of 18.89% and a net margin of 16.72%.The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.18 billion. As a group, equities analysts predict that Rithm Capital Corp. will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were paid a $0.25 dividend. The ex-dividend date was Monday, June 30th. This represents a $1.00 annualized dividend and a yield of 8.1%. Rithm Capital's payout ratio is 76.92%.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.