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 position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 72.5% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 600,893 shares of the real estate investment trust's stock after purchasing an additional 252,487 shares during the quarter. Citigroup Inc. owned about 0.11% of Rithm Capital worth $6,880,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the company. Balyasny Asset Management L.P. grew its position in shares of Rithm Capital by 48.6% during the 4th quarter. Balyasny Asset Management L.P. now owns 6,535,525 shares of the real estate investment trust's stock worth $70,780,000 after buying an additional 2,136,342 shares during the period. Wellington Management Group LLP grew its position in shares of Rithm Capital by 0.9% during the 4th quarter. Wellington Management Group LLP now owns 3,600,461 shares of the real estate investment trust's stock worth $38,993,000 after buying an additional 32,544 shares during the period. First Trust Advisors LP grew its position in shares of Rithm Capital by 78.3% during the 4th quarter. First Trust Advisors LP now owns 3,304,999 shares of the real estate investment trust's stock worth $35,793,000 after buying an additional 1,451,829 shares during the period. Northern Trust Corp grew its position in shares of Rithm Capital by 29.6% during the 4th quarter. Northern Trust Corp now owns 3,284,237 shares of the real estate investment trust's stock worth $35,568,000 after buying an additional 750,656 shares during the period. Finally, Mackenzie Financial Corp grew its position in shares of Rithm Capital by 288.6% during the 1st quarter. Mackenzie Financial Corp now owns 2,725,392 shares of the real estate investment trust's stock worth $31,206,000 after buying an additional 2,024,090 shares during the period. Institutional investors own 44.92% of the company's stock.

Analyst Ratings Changes

RITM has been the subject of several recent analyst reports. Piper Sandler raised shares of Rithm Capital from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $12.50 to $14.00 in a research report on Monday, April 28th. UBS Group reissued a "buy" rating and issued a $14.00 price target (up previously from $13.00) on shares of Rithm Capital in a research report on Tuesday, July 15th. Keefe, Bruyette & Woods lifted their price target on shares of Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a research report on Tuesday, July 29th. Wedbush reissued an "outperform" rating and issued a $14.00 price target on shares of Rithm Capital in a research report on Wednesday, August 6th. Finally, BTIG Research reaffirmed a "buy" rating and set a $16.00 price objective on shares of Rithm Capital in a report on Friday, April 25th. One investment analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $14.00.

Rithm Capital Stock Up 2.7%

RITM traded up $0.3250 during mid-day trading on Friday, reaching $12.5250. 1,876,130 shares of the stock were exchanged, compared to its average volume of 4,530,347. The stock has a market capitalization of $6.64 billion, a PE ratio of 9.63 and a beta of 1.25. Rithm Capital Corp. has a 1 year low of $9.13 and a 1 year high of $12.59. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.40 and a current ratio of 0.40. The company has a 50 day moving average price of $11.86 and a two-hundred day moving average price of $11.48.

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

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.0%. The ex-dividend date was Monday, June 30th. Rithm Capital's payout ratio is presently 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.