Federated Hermes Inc. Makes New $1.76 Million Investment in Rithm Capital Corp. (NYSE:RITM)

Key Points

• Federated Hermes Inc. made a new investment in Rithm Capital Corp. by acquiring 153,451 shares valued at approximately $1.76 million during the 1st quarter.
• Research firms have shown confidence in Rithm Capital, with multiple upgrades, including a target price increase from $12.50 to $14.00 by Piper Sandler, and a consensus rating of "Buy."
• Rithm Capital has announced a quarterly dividend of $0.25 per share, translating to an annual yield of 8.2%, reflecting a payout ratio of 76.92%.

Federated Hermes Inc. acquired a new stake in Rithm Capital Corp. (NYSE:RITM - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 153,451 shares of the real estate investment trust's stock, valued at approximately $1,757,000.

Other hedge funds have also added to or reduced their stakes in the company. Fourth Dimension Wealth LLC grew its holdings in Rithm Capital by 50.0% during the 1st quarter. Fourth Dimension Wealth LLC now owns 3,000 shares of the real estate investment trust's stock worth $34,000 after acquiring an additional 1,000 shares in the last quarter. Quarry LP lifted its position in shares of Rithm Capital by 47.5% in the 4th quarter. Quarry LP now owns 4,118 shares of the real estate investment trust's stock worth $45,000 after purchasing an additional 1,327 shares during the period. Quadrant Capital Group LLC boosted its stake in shares of Rithm Capital by 35.2% during the fourth quarter. Quadrant Capital Group LLC now owns 4,655 shares of the real estate investment trust's stock valued at $50,000 after purchasing an additional 1,211 shares in the last quarter. Quent Capital LLC increased its holdings in Rithm Capital by 58.6% during the first quarter. Quent Capital LLC now owns 5,465 shares of the real estate investment trust's stock valued at $63,000 after buying an additional 2,019 shares during the period. Finally, CWM LLC raised its stake in Rithm Capital by 25.5% in the first quarter. CWM LLC now owns 6,046 shares of the real estate investment trust's stock worth $69,000 after buying an additional 1,228 shares in the last quarter. 44.92% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on RITM shares. UBS Group reissued a "buy" rating and issued a $14.00 price target (up from $13.00) on shares of Rithm Capital in a research report on Tuesday, July 15th. Wedbush reaffirmed an "outperform" rating and issued a $14.00 price objective on shares of Rithm Capital in a research report on Wednesday. BTIG Research reissued a "buy" rating and set a $16.00 target price on shares of Rithm Capital in a research report on Friday, April 25th. Royal Bank Of Canada lifted their price target on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Finally, Jones Trading upped their price target on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Eight analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Rithm Capital currently has a consensus rating of "Buy" and a consensus price target of $14.00.

Rithm Capital Stock Performance

Shares of RITM traded up $0.07 during trading hours on Friday, reaching $12.26. 1,966,045 shares of the company traded hands, compared to its average volume of 4,576,475. The business has a fifty day moving average price of $11.67 and a 200-day moving average price of $11.42. The company has a quick ratio of 0.35, a current ratio of 0.40 and a debt-to-equity ratio of 1.63. The stock has a market capitalization of $6.50 billion, a P/E ratio of 9.43 and a beta of 1.25. Rithm Capital Corp. has a 12-month low of $9.13 and a 12-month high of $12.59.

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

Rithm Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 8.2%. The ex-dividend date was Monday, June 30th. Rithm Capital's dividend payout ratio is currently 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.