Magnetar Financial LLC Acquires 193,167 Shares of Rithm Capital Corp. $RITM

Key Points

• Magnetar Financial boosted its stake in Rithm Capital by 188.8%, buying 193,167 shares to hold 295,499 shares (about 0.05% of the company) valued at roughly $3.37 million.
• Rithm pays a quarterly dividend that annualizes to $1.00 for a 10.1% yield, though its dividend payout ratio is high at 96.15%.
• Rithm recently beat quarterly estimates ($0.74 EPS vs. $0.55 expected) and trades at a PE of 9.48 with a $5.48 billion market cap; analysts have a consensus rating of Moderate Buy and a $14.50 average price target (7 Buys, 1 Hold).

Magnetar Financial LLC increased its stake in Rithm Capital Corp. (NYSE:RITM - Free Report) by 188.8% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 295,499 shares of the real estate investment trust's stock after acquiring an additional 193,167 shares during the period. Magnetar Financial LLC owned approximately 0.05% of Rithm Capital worth $3,366,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Quadrant Capital Group LLC bought a new stake in shares of Rithm Capital in the 3rd quarter valued at approximately $82,000. Fieldview Capital Management LLC bought a new position in shares of Rithm Capital during the 3rd quarter valued at approximately $444,000. Swiss National Bank raised its holdings in Rithm Capital by 1.5% during the 3rd quarter. Swiss National Bank now owns 1,027,905 shares of the real estate investment trust's stock valued at $11,708,000 after buying an additional 14,700 shares during the period. Russell Investments Group Ltd. raised its holdings in Rithm Capital by 778.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 149,742 shares of the real estate investment trust's stock valued at $1,706,000 after buying an additional 132,701 shares during the period. Finally, SMH Capital Advisors Inc. lifted its position in Rithm Capital by 5.4% in the third quarter. SMH Capital Advisors Inc. now owns 35,944 shares of the real estate investment trust's stock worth $394,000 after buying an additional 1,830 shares during the last quarter. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Rithm Capital Stock Performance

Shares of Rithm Capital stock opened at $9.86 on Thursday. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. The stock's fifty day moving average is $10.85 and its two-hundred day moving average is $11.20. Rithm Capital Corp. has a 52 week low of $9.13 and a 52 week high of $12.74. The company has a market capitalization of $5.48 billion, a PE ratio of 9.48 and a beta of 1.21.

Rithm Capital (NYSE:RITM - Get Free Report) last released its earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.19. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.24 billion. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%. As a group, analysts expect that Rithm Capital Corp. will post 1.93 earnings per share for the current year.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Wednesday, December 31st were issued a dividend of $0.25 per share. The ex-dividend date was Wednesday, December 31st. This represents a $1.00 dividend on an annualized basis and a yield of 10.1%. Rithm Capital's dividend payout ratio (DPR) is presently 96.15%.

Analyst Upgrades and Downgrades

Several research firms have commented on RITM. Piper Sandler reaffirmed an "overweight" rating and set a $15.00 price objective (down from $15.50) on shares of Rithm Capital in a research note on Wednesday, February 4th. Wedbush started coverage on shares of Rithm Capital in a research note on Monday, December 15th. They issued an "outperform" rating and a $14.00 target price on the stock. Wall Street Zen upgraded shares of Rithm Capital from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Rithm Capital in a research note on Monday, December 29th. Finally, UBS Group set a $15.00 price target on shares of Rithm Capital in a report on Friday, February 6th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.50.

Rithm Capital Company Profile

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.

Want to see what other hedge funds are holding RITM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Rithm Capital Corp. (NYSE:RITM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.