Vanguard Group Inc. Sells 176,811 Shares of Rithm Capital Corp. $RITM

Key Points

• Vanguard Group Inc. reduced its stake in Rithm Capital Corp. by selling 176,811 shares, resulting in ownership of 48,831,611 shares, or 9.21% of the company, valued at approximately $559 million.
• Rithm Capital reported earnings of $0.54 per share for the last quarter, exceeding expectations of $0.51, with a revenue of $1.22 billion against an anticipated $1.18 billion.
• The company announced a quarterly dividend of $0.25, which signifies an annualized dividend yield of 8.1%, and has a current payout ratio of 76.92%.

Vanguard Group Inc. cut its position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 0.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 48,831,611 shares of the real estate investment trust's stock after selling 176,811 shares during the period. Vanguard Group Inc. owned 9.21% of Rithm Capital worth $559,122,000 as of its most recent SEC filing.

Several other institutional investors have also made changes to their positions in the company. Fourth Dimension Wealth LLC lifted its stake in shares of 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 period. Quarry LP grew its position in 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 acquiring an additional 1,327 shares during the last quarter. Quent Capital LLC lifted its position in shares of Rithm Capital by 58.6% during 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. CWM LLC grew its stake in shares of Rithm Capital by 25.5% during the first quarter. CWM LLC now owns 6,046 shares of the real estate investment trust's stock valued at $69,000 after purchasing an additional 1,228 shares during the last quarter. Finally, Rossby Financial LCC bought a new position in Rithm Capital in the 1st quarter worth approximately $79,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have commented on the company. BTIG Research reiterated a "buy" rating and issued a $16.00 price objective on shares of Rithm Capital in a research report on Friday, April 25th. UBS Group reissued a "buy" rating and set a $14.00 price objective (up from $13.00) on shares of Rithm Capital in a report on Tuesday, July 15th. Royal Bank Of Canada raised their target price on shares of Rithm Capital from $13.00 to $14.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Jones Trading increased their price objective on shares of Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a report on Tuesday, July 29th. Finally, Wedbush reiterated an "outperform" rating and set a $14.00 target price on shares of Rithm Capital in a research report on Wednesday, August 6th. Eight investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $14.00.

Rithm Capital Stock Up 0.8%

NYSE RITM traded up $0.10 during trading hours on Tuesday, reaching $12.34. 420,359 shares of the company's stock were exchanged, compared to its average volume of 4,547,021. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.40 and a current ratio of 0.40. Rithm Capital Corp. has a one year low of $9.13 and a one year high of $12.59. The company's 50-day moving average is $11.80 and its two-hundred day moving average is $11.46. The company has a market capitalization of $6.54 billion, a price-to-earnings ratio of 9.50 and a beta of 1.25.

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

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were given 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 presently 76.92%.

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.