Massachusetts Financial Services Co. MA Makes New Investment in Rithm Capital Corp. $RITM

Key Points

• Massachusetts Financial Services Co. opened a new Q4 13F position in Rithm Capital, buying 136,915 shares valued at about $1.49 million, within a stock base that is 44.92% institutionally owned.
• Analyst sentiment is broadly positive — seven Buys and one Hold — with a consensus price target of $14.06 and recent price targets reported as high as $16.00.
• Rithm declared a $0.25 quarterly dividend (annualized $1.00) implying a 9.8% yield but a ~96% payout ratio, and recently beat quarterly EPS estimates ($0.74 vs. $0.55).

Massachusetts Financial Services Co. MA purchased a new position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 136,915 shares of the real estate investment trust's stock, valued at approximately $1,492,000.

Other large investors also recently bought and sold shares of the company. Curi Capital LLC increased its holdings in shares of Rithm Capital by 0.7% in the 2nd quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust's stock valued at $1,358,000 after acquiring an additional 829 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock valued at $81,000 after acquiring an additional 881 shares during the last quarter. City Holding Co. increased its holdings in shares of Rithm Capital by 35.1% in the 4th quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust's stock valued at $42,000 after acquiring an additional 1,000 shares during the last quarter. Signaturefd LLC increased its holdings in shares of Rithm Capital by 2.3% in the 3rd quarter. Signaturefd LLC now owns 45,012 shares of the real estate investment trust's stock valued at $513,000 after acquiring an additional 1,009 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its holdings in shares of Rithm Capital by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 165,278 shares of the real estate investment trust's stock valued at $1,883,000 after acquiring an additional 1,024 shares during the last quarter. Hedge funds and other institutional investors own 44.92% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently commented on RITM. Capital One Financial set a $12.50 price objective on Rithm Capital in a report on Thursday, April 9th. UBS Group dropped their price objective on Rithm Capital from $15.00 to $14.50 and set a "buy" rating on the stock in a report on Friday, April 10th. Wall Street Zen upgraded Rithm Capital from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Rithm Capital in a report on Monday, December 29th. Finally, BTIG Research reiterated a "buy" rating and issued a $16.00 price objective on shares of Rithm Capital in a report on Friday, April 10th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $14.06.

Rithm Capital Stock Up 2.0%

Shares of NYSE RITM opened at $10.16 on Friday. The stock has a market cap of $5.67 billion, a PE ratio of 9.76 and a beta of 1.19. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. Rithm Capital Corp. has a 52-week low of $8.43 and a 52-week high of $12.74. The business has a 50-day moving average price of $9.86 and a 200 day moving average price of $10.70.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.19. The firm had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.24 billion. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%. Equities research analysts forecast that Rithm Capital Corp. will post 1.93 earnings per share for the current year.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Monday, April 6th will be given a $0.25 dividend. The ex-dividend date of this dividend is Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.8%. Rithm Capital's dividend payout ratio is 96.15%.

Rithm Capital 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.

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