Rithm Capital Corp. (NYSE:RITM) Position Raised by Neo Ivy Capital Management

Key Points

• Neo Ivy Capital Management has significantly increased its stake in Rithm Capital Corp. by 76.8%, now owning 366,338 shares, which constitutes 1.3% of its overall portfolio.
• Rithm Capital's recent quarterly earnings exceeded expectations, reporting $0.52 earnings per share compared to the consensus estimate of $0.45.
• The company has announced a quarterly dividend of $0.25 per share, which results in an annualized yield of 8.21%.

Neo Ivy Capital Management raised its stake in Rithm Capital Corp. (NYSE:RITM - Free Report) by 76.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 366,338 shares of the real estate investment trust's stock after purchasing an additional 159,080 shares during the period. Rithm Capital accounts for approximately 1.3% of Neo Ivy Capital Management's investment portfolio, making the stock its 4th largest holding. Neo Ivy Capital Management owned about 0.07% of Rithm Capital worth $4,195,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Fourth Dimension Wealth LLC lifted its position in Rithm Capital by 50.0% in the first quarter. Fourth Dimension Wealth LLC now owns 3,000 shares of the real estate investment trust's stock valued at $34,000 after buying an additional 1,000 shares during the last quarter. Quarry LP increased its holdings in shares of Rithm Capital by 47.5% during the 4th quarter. Quarry LP now owns 4,118 shares of the real estate investment trust's stock worth $45,000 after buying an additional 1,327 shares during the last quarter. Quadrant Capital Group LLC boosted its holdings in Rithm Capital by 35.2% in the 4th quarter. Quadrant Capital Group LLC now owns 4,655 shares of the real estate investment trust's stock worth $50,000 after acquiring an additional 1,211 shares during the period. Quent Capital LLC grew its stake in Rithm Capital by 58.6% in the first quarter. Quent Capital LLC now owns 5,465 shares of the real estate investment trust's stock worth $63,000 after purchasing an additional 2,019 shares in the last quarter. Finally, CWM LLC grew its stake in Rithm Capital by 25.5% during the 1st quarter. CWM LLC now owns 6,046 shares of the real estate investment trust's stock worth $69,000 after buying an additional 1,228 shares during the last quarter. 44.92% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have issued reports on RITM shares. Piper Sandler upgraded Rithm Capital from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $12.50 to $14.00 in a report on Monday, April 28th. UBS Group restated a "buy" rating and set a $14.00 target price (up previously from $13.00) on shares of Rithm Capital in a report on Tuesday, July 15th. BTIG Research reissued a "buy" rating and issued a $16.00 price objective on shares of Rithm Capital in a report on Friday, April 25th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $13.00 price target on shares of Rithm Capital in a research note on Tuesday, May 20th. Finally, Jones Trading restated a "buy" rating and issued a $12.50 price target on shares of Rithm Capital in a research report on Tuesday, April 29th. Eight investment analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $13.69.

Rithm Capital Stock Performance

Shares of NYSE RITM traded up $0.11 during trading on Monday, reaching $12.30. 3,145,930 shares of the stock traded hands, compared to its average volume of 4,461,439. The company has a debt-to-equity ratio of 1.68, a current ratio of 0.35 and a quick ratio of 0.35. The stock has a market capitalization of $6.52 billion, a P/E ratio of 10.25 and a beta of 1.25. Rithm Capital Corp. has a 52-week low of $9.13 and a 52-week high of $12.59. The company has a 50-day moving average of $11.49 and a 200-day moving average of $11.35.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The real estate investment trust reported $0.54 EPS for the quarter, beating analysts' consensus estimates of $0.51 by $0.03. Rithm Capital had a net margin of 15.06% and a return on equity of 18.38%. The company had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.18 billion. Analysts forecast that Rithm Capital Corp. will post 1.93 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Investors of record on Monday, June 30th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, June 30th. This represents a $1.00 dividend on an annualized basis and a yield of 8.13%. Rithm Capital's dividend payout ratio (DPR) is 83.33%.

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.