Mitsubishi UFJ Trust & Banking Corp Has $1.75 Million Stock Position in Rithm Capital Corp. $RITM

Key Points

• Mitsubishi UFJ Trust & Banking cut its stake in Rithm Capital by 61.5% in Q4, selling 256,161 shares and retaining 160,376 shares worth about $1.75 million.
• Rithm pays a quarterly dividend that annualizes to $1.00 (10.4% yield), but the dividend payout ratio is high at 91.74%, indicating potential payout risk.
• Analysts have a consensus rating of “Moderate Buy” with an average price target of $13.63 (seven Buys, one Hold), while the stock recently traded near $9.65 and several firms have trimmed targets.

Mitsubishi UFJ Trust & Banking Corp decreased its holdings in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 61.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 160,376 shares of the real estate investment trust's stock after selling 256,161 shares during the quarter. Mitsubishi UFJ Trust & Banking Corp's holdings in Rithm Capital were worth $1,748,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Curi Capital LLC grew its stake in 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 buying an additional 829 shares during the last quarter. Geneos Wealth Management Inc. grew its stake in 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 buying an additional 881 shares during the last quarter. City Holding Co. grew its stake in 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 buying an additional 1,000 shares during the last quarter. Westbourne Investment Advisors Inc. grew its stake in Rithm Capital by 1.8% in the 4th quarter. Westbourne Investment Advisors Inc. now owns 55,500 shares of the real estate investment trust's stock valued at $605,000 after buying an additional 1,000 shares during the last quarter. Finally, Signaturefd LLC grew its stake in 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 buying an additional 1,009 shares during the last quarter. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on RITM shares. Royal Bank Of Canada lowered their target price on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday. Piper Sandler lowered their target price on shares of Rithm Capital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Wall Street Zen downgraded shares of Rithm Capital from a "buy" rating to a "hold" rating in a report on Saturday. BTIG Research reissued a "buy" rating and issued a $16.00 price target on shares of Rithm Capital in a report on Friday, April 10th. Finally, UBS Group reduced their price target on shares of Rithm Capital from $15.00 to $14.50 and set a "buy" rating for the company in a report on Friday, April 10th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.63.

Rithm Capital Price Performance

Shares of Rithm Capital stock opened at $9.65 on Tuesday. The company has a debt-to-equity ratio of 2.20, a current ratio of 0.58 and a quick ratio of 0.58. Rithm Capital Corp. has a fifty-two week low of $8.43 and a fifty-two week high of $12.74. The firm has a fifty day moving average price of $9.75 and a two-hundred day moving average price of $10.63. The company has a market cap of $5.38 billion, a PE ratio of 8.85 and a beta of 1.17.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts' consensus estimates of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.27 billion. Analysts expect that Rithm Capital Corp. will post 2.28 EPS for the current year.

Rithm Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Monday, April 6th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.4%. The ex-dividend date of this dividend was Monday, April 6th. Rithm Capital's dividend payout ratio (DPR) 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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