Rithm Capital Corp. $RITM Stock Holdings Trimmed by Northern Right Capital Management L.P.

Key Points

• Northern Right Capital Management has reduced its stake in Rithm Capital Corp by 3.9%, now holding $24.28 million, which constitutes about 9.9% of its total portfolio.
• Several hedge funds, including Quarry LP and Nomura Holdings Inc., have increased their stakes in Rithm Capital, indicating growing institutional confidence in the company.
• Analysts have a consensus "Buy" rating for Rithm Capital with an average target price of $14.00, reflecting optimism about its future performance.

Northern Right Capital Management L.P. lowered its stake in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 3.9% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,120,496 shares of the real estate investment trust's stock after selling 86,474 shares during the quarter. Rithm Capital makes up about 9.9% of Northern Right Capital Management L.P.'s holdings, making the stock its 2nd biggest position. Northern Right Capital Management L.P. owned 0.40% of Rithm Capital worth $24,280,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of RITM. Quarry LP boosted its position in shares of Rithm Capital by 251.6% during the 1st quarter. Quarry LP now owns 14,479 shares of the real estate investment trust's stock worth $166,000 after purchasing an additional 10,361 shares in the last quarter. Nomura Holdings Inc. grew its holdings in shares of Rithm Capital by 43.4% during the 1st quarter. Nomura Holdings Inc. now owns 1,842,125 shares of the real estate investment trust's stock worth $21,092,000 after purchasing an additional 557,482 shares during the period. Vident Advisory LLC grew its holdings in shares of Rithm Capital by 14.4% during the 1st quarter. Vident Advisory LLC now owns 17,738 shares of the real estate investment trust's stock worth $203,000 after purchasing an additional 2,229 shares during the period. Magnetar Financial LLC lifted its position in Rithm Capital by 125.2% during the 1st quarter. Magnetar Financial LLC now owns 130,832 shares of the real estate investment trust's stock worth $1,498,000 after acquiring an additional 72,725 shares in the last quarter. Finally, Ieq Capital LLC acquired a new position in Rithm Capital during the 1st quarter worth approximately $1,309,000. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RITM has been the topic of a number of recent analyst reports. Jones Trading upped their target price on Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Wedbush reissued an "outperform" rating and set a $14.00 price target on shares of Rithm Capital in a report on Wednesday, August 6th. Royal Bank Of Canada lifted their price target on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Keefe, Bruyette & Woods raised their price target on shares of Rithm Capital from $13.50 to $14.00 and gave the stock an "outperform" rating in a report on Tuesday, July 29th. Finally, UBS Group raised their price target on Rithm Capital from $14.00 to $16.00 and gave the stock a "buy" rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $14.25.

Rithm Capital Price Performance

Shares of RITM stock traded up $0.08 during trading hours on Wednesday, hitting $12.35. 6,187,376 shares of the company's stock were exchanged, compared to its average volume of 4,872,866. The stock's 50-day moving average is $12.07 and its 200-day moving average is $11.51. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. The stock has a market cap of $6.55 billion, a price-to-earnings ratio of 9.50 and a beta of 1.30. Rithm Capital Corp. has a 52 week low of $9.13 and a 52 week high of $12.61.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its quarterly earnings results on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.03. The business had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.18 billion. Rithm Capital had a return on equity of 18.89% and a net margin of 16.72%. As a group, research analysts forecast that Rithm Capital Corp. will post 1.93 EPS for the current year.

Rithm Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.1%. The ex-dividend date of this dividend was Monday, June 30th. Rithm Capital's payout ratio is currently 76.92%.

Rithm Capital Profile

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.