Hsbc Holdings PLC Acquires New Position in Rithm Capital Corp. $RITM

Key Points

• Hsbc Holdings PLC has acquired a new position in Rithm Capital Corp., purchasing 63,506 shares valued at approximately $719,000 during the first quarter.
• Several hedge funds increased their stakes in Rithm Capital, with notable growth from Balyasny Asset Management (48.6% increase) and Mackenzie Financial Corp (288.6% increase) in recent quarters.
• Analysts have a generally positive outlook on Rithm Capital, with an average price target of $14.00 and multiple upgrades to "buy" and "outperform" ratings from various research firms.

Hsbc Holdings PLC purchased a new stake in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 63,506 shares of the real estate investment trust's stock, valued at approximately $719,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. KBC Group NV increased its position in shares of Rithm Capital by 24.0% during the first quarter. KBC Group NV now owns 22,846 shares of the real estate investment trust's stock valued at $262,000 after buying an additional 4,423 shares during the period. Edgestream Partners L.P. grew its position in Rithm Capital by 341.5% during the first quarter. Edgestream Partners L.P. now owns 688,882 shares of the real estate investment trust's stock worth $7,888,000 after buying an additional 532,866 shares in the last quarter. Amalgamated Bank increased its stake in Rithm Capital by 5.9% in the 1st quarter. Amalgamated Bank now owns 27,064 shares of the real estate investment trust's stock worth $310,000 after acquiring an additional 1,502 shares during the last quarter. Bleakley Financial Group LLC raised its holdings in shares of Rithm Capital by 197.1% in the 1st quarter. Bleakley Financial Group LLC now owns 36,428 shares of the real estate investment trust's stock valued at $417,000 after acquiring an additional 24,166 shares in the last quarter. Finally, Northern Trust Corp raised its holdings in shares of Rithm Capital by 29.6% in the 4th quarter. Northern Trust Corp now owns 3,284,237 shares of the real estate investment trust's stock valued at $35,568,000 after acquiring an additional 750,656 shares in the last quarter. Institutional investors own 44.92% of the company's stock.

Rithm Capital Stock Performance

Shares of RITM traded up $0.12 during mid-day trading on Thursday, reaching $12.47. 2,588,014 shares of the company's stock were exchanged, compared to its average volume of 4,559,901. 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 $12.61. The business's fifty day simple moving average is $12.07 and its 200-day simple moving average is $11.51. The stock has a market capitalization of $6.61 billion, a PE ratio of 9.59 and a beta of 1.30.

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

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 8.0%. The ex-dividend date was Monday, June 30th. Rithm Capital's dividend payout ratio is presently 76.92%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Wedbush restated an "outperform" rating and issued a $14.00 price objective on shares of Rithm Capital in a research report on Wednesday, August 6th. Jones Trading raised their price objective on shares of Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a research report on Tuesday, July 29th. UBS Group increased their target price on Rithm Capital from $14.00 to $16.00 and gave the company a "buy" rating in a research note on Wednesday. Keefe, Bruyette & Woods lifted their price target on Rithm Capital from $13.50 to $14.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 29th. Finally, Royal Bank Of Canada increased their price objective on Rithm Capital from $13.00 to $14.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $14.25.

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.