Independent Financial Group LLC Makes New $1.06 Million Investment in Rithm Capital Corp. $RITM

Key Points

• Independent Financial Group LLC opened a new position in Rithm Capital, buying 111,916 shares valued at about $1.06 million in the first quarter.
• Several other institutional investors also adjusted their stakes, and institutions now own 44.92% of Rithm Capital’s stock. Meanwhile, director David Saltzman sold 80,922 shares in May, reducing his holdings by 64.65%.
• Rithm Capital recently reported quarterly earnings of $0.51 per share, missing estimates, but revenue came in above expectations at $1.38 billion. The company also declared a quarterly dividend of $0.25 per share, implying a 10.9% annualized yield.

Independent Financial Group LLC bought a new stake in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 111,916 shares of the real estate investment trust's stock, valued at approximately $1,061,000.

A number of other hedge funds have also recently modified their holdings of RITM. JPMorgan Chase & Co. grew its position in shares of Rithm Capital by 8.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,536,981 shares of the real estate investment trust's stock worth $17,506,000 after buying an additional 121,137 shares in the last quarter. Columbus Macro LLC grew its holdings in Rithm Capital by 130.1% during the 4th quarter. Columbus Macro LLC now owns 713,165 shares of the real estate investment trust's stock worth $7,773,000 after acquiring an additional 403,188 shares in the last quarter. WINTON GROUP Ltd bought a new position in Rithm Capital during the 4th quarter worth about $2,007,000. Massachusetts Financial Services Co. MA purchased a new position in Rithm Capital during the 4th quarter valued at about $1,492,000. Finally, UBS Group AG raised its holdings in shares of Rithm Capital by 4.0% in the 4th quarter. UBS Group AG now owns 3,869,113 shares of the real estate investment trust's stock valued at $42,173,000 after purchasing an additional 150,291 shares in the last quarter. Institutional investors own 44.92% of the company's stock.

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the completion of the sale, the director owned 44,248 shares of the company's stock, valued at approximately $409,294. The trade was a 64.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.57% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on RITM shares. JonesTrading reissued a "buy" rating and set a $13.50 price objective on shares of Rithm Capital in a report on Tuesday, April 28th. Keefe, Bruyette & Woods cut their price target on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Citigroup restated an "outperform" rating on shares of Rithm Capital in a research note on Wednesday, May 20th. BTIG Research cut their target price on Rithm Capital from $16.00 to $13.00 and set a "buy" rating on the stock in a research note on Tuesday, June 16th. Finally, Weiss Ratings downgraded shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 26th. Ten research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Rithm Capital presently has an average rating of "Moderate Buy" and an average price target of $13.20.

Rithm Capital Stock Performance

RITM opened at $9.19 on Tuesday. The company has a market cap of $5.13 billion, a P/E ratio of 8.43 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. The firm's 50-day moving average price is $9.23 and its 200-day moving average price is $9.94. Rithm Capital Corp. has a 52-week low of $8.43 and a 52-week high of $12.74.

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

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 2nd will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 10.9%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital's dividend payout ratio is presently 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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