Conversant Capital LLC Sells 755,000 Shares of Rithm Capital Corp. $RITM

Key Points

• Conversant Capital LLC reduced its Rithm Capital stake by 23.2% in the first quarter, selling 755,000 shares and leaving it with 2.5 million shares worth about $23.7 million.
• Analysts were mixed but mostly positive: 10 analysts rate RITM a Buy, while Weiss Ratings downgraded it to Sell and several firms lowered price targets. The stock’s average target is $13.20, with a Moderate Buy consensus.
• Rithm Capital recently announced a quarterly dividend of $0.25 per share, equal to an annualized yield of 11.0%, even after reporting quarterly earnings of $0.51 per share, slightly below expectations.

Conversant Capital LLC trimmed its stake in Rithm Capital Corp. (NYSE:RITM - Free Report) by 23.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,500,000 shares of the real estate investment trust's stock after selling 755,000 shares during the period. Rithm Capital comprises about 3.3% of Conversant Capital LLC's investment portfolio, making the stock its 8th largest position. Conversant Capital LLC owned 0.45% of Rithm Capital worth $23,700,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Rithm Capital by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 50,282,841 shares of the real estate investment trust's stock valued at $548,083,000 after purchasing an additional 1,191,923 shares in the last quarter. State Street Corp grew its holdings in shares of Rithm Capital by 5.3% in the 4th quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock worth $117,701,000 after purchasing an additional 530,607 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Rithm Capital by 4.8% during the 4th quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust's stock worth $104,904,000 after purchasing an additional 443,144 shares in the last quarter. Qube Research & Technologies Ltd increased its position in shares of Rithm Capital by 80.7% during 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 purchasing an additional 3,524,330 shares in the last quarter. Finally, Norges Bank bought a new position in Rithm Capital during the 4th quarter valued at about $77,067,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Weiss Ratings cut shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, May 26th. Keefe, Bruyette & Woods cut their target price on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Wedbush cut their target price on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating for the company in a research note on Friday, May 1st. Piper Sandler reduced their target price on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. Finally, UBS Group decreased their price target on Rithm Capital from $15.00 to $14.50 and set a "buy" rating on the stock in a research report on Friday, April 10th. Ten research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Rithm Capital has an average rating of "Moderate Buy" and an average price target of $13.20.

Insiders Place Their Bets

In related news, Director David Saltzman sold 80,922 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total value of $748,528.50. Following the completion of the transaction, the director owned 44,248 shares in the company, valued at $409,294. The trade was a 64.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.57% of the stock is owned by company insiders.

Rithm Capital Stock Performance

Rithm Capital stock opened at $9.11 on Friday. The stock has a 50-day simple moving average of $9.21 and a 200 day simple moving average of $9.89. The stock has a market capitalization of $5.08 billion, a price-to-earnings ratio of 8.35 and a beta of 1.14. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital Corp. has a 12-month low of $8.43 and a 12-month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts' consensus estimates of $0.53 by ($0.02). Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%.The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.27 billion. On average, research analysts anticipate that Rithm Capital Corp. will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 2nd will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 11.0%. Rithm Capital's dividend payout ratio (DPR) 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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