Rithm Capital Corp. $RITM Stock Holdings Reduced by Simplify Asset Management Inc.

Key Points

• Simplify Asset Management reduced its Rithm Capital position by 34.5% in the third quarter, selling 141,890 shares and retaining 269,703 shares valued at approximately $2.34 million. Hedge funds and institutional investors collectively own 44.92% of RITM.
• Rithm Capital reported quarterly earnings of $0.55 per share, beating analyst expectations of $0.50, while revenue reached $1.76 billion versus the $1.47 billion consensus estimate.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $12.80 versus the stock’s $9.27 opening price. The company also declared a quarterly dividend of $0.25 per share, representing an annualized yield of about 10.8%.

Simplify Asset Management Inc. reduced its position in Rithm Capital Corp. (NYSE:RITM - Free Report) by 34.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 269,703 shares of the real estate investment trust's stock after selling 141,890 shares during the quarter. Simplify Asset Management Inc.'s holdings in Rithm Capital were worth $2,341,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Sage Investment Counsel LLC lifted its position in shares of Rithm Capital by 8.6% during the third quarter. Sage Investment Counsel LLC now owns 50,700 shares of the real estate investment trust's stock worth $453,000 after purchasing an additional 4,000 shares in the last quarter. Samalin Investment Counsel LLC grew its holdings in shares of Rithm Capital by 55.3% in the third quarter. Samalin Investment Counsel LLC now owns 35,035 shares of the real estate investment trust's stock valued at $313,000 after purchasing an additional 12,470 shares in the last quarter. Signaturefd LLC grew its holdings in shares of Rithm Capital by 15.2% in the third quarter. Signaturefd LLC now owns 58,988 shares of the real estate investment trust's stock valued at $527,000 after purchasing an additional 7,776 shares in the last quarter. Evergreen Capital Management LLC grew its holdings in shares of Rithm Capital by 0.7% in the third quarter. Evergreen Capital Management LLC now owns 1,435,825 shares of the real estate investment trust's stock valued at $12,822,000 after purchasing an additional 10,627 shares in the last quarter. Finally, Royal Fund Management LLC acquired a new position in shares of Rithm Capital in the third quarter valued at approximately $95,000. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have commented on RITM. Wedbush assumed coverage on shares of Rithm Capital in a research note on Thursday, October 22nd. They issued an "outperform" rating and a $10.00 price target for the company. Piper Sandler cut their price objective on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. UBS Group reduced their price objective on Rithm Capital from $14.50 to $14.00 and set a "buy" rating on the stock in a research note on Friday, August 21st. Weiss Ratings lowered Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 2nd. Finally, Wall Street Zen upgraded Rithm Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Rithm Capital currently has an average rating of "Moderate Buy" and a consensus price target of $12.80.

Key Headlines Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Analyst support strengthened. Keefe, Bruyette & Woods raised its price target to $13 from $12.50 and maintained an “outperform” rating. Wedbush also initiated or reiterated a “buy” rating, reinforcing the view that RITM is undervalued relative to its earnings and asset base. Keefe, Bruyette & Woods coverage Wedbush buy rating
• Positive Sentiment: Third-quarter results supported the bull case. Recent analysis characterized Rithm’s earnings as evidence that the market may have punished it alongside mortgage REIT peers unfairly. Its diversified operations—approximately 80% in operating businesses and only about 20% in traditional mortgage investments—may reduce exposure to commercial real estate and interest-rate risks. Its mortgage-servicing-rights portfolio also benefited from slower prepayments and longer-lasting servicing fees. Rithm Capital Q3 analysis
• Positive Sentiment: New Manhattan real-estate joint venture adds an operating-business catalyst. Rithm and DRA Advisors completed a joint venture involving a fully leased Midtown office tower. Declining Manhattan office vacancy, reported at 12.6%, provides a more supportive backdrop for the asset, though the article did not disclose the transaction’s financial contribution. Midtown office joint venture
• Neutral Sentiment: Valuation comparisons remain favorable but not definitive. Articles comparing RITM with SoFi identify Rithm as a potential value choice, while consensus analyst targets imply roughly 35% upside. However, target-price estimates are not guarantees, and investors should weigh RITM’s leverage, interest-rate sensitivity and real-estate exposure. RITM versus SOFI valuation comparison

Insider Activity at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the sale, the director directly owned 82,259 shares of the company's stock, valued at approximately $837,396.62. This represents a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.57% of the company's stock.

Rithm Capital Stock Performance

Shares of Rithm Capital stock opened at $9.27 on Thursday. The business has a 50-day simple moving average of $9.35 and a 200-day simple moving average of $9.74. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.58 and a current ratio of 0.83. Rithm Capital Corp. has a one year low of $8.31 and a one year high of $12.15. The company has a market cap of $5.18 billion, a PE ratio of 14.72, a P/E/G ratio of 0.59 and a beta of 1.16.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its earnings results on Friday, October 23rd. The real estate investment trust reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.05. Rithm Capital had a net margin of 8.71% and a return on equity of 20.03%. The firm had revenue of $1.76 billion for the quarter, compared to analysts' expectations of $1.47 billion. On average, equities research analysts forecast that Rithm Capital Corp. will post 2.32 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Thursday, October 1st will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 10.8%. The ex-dividend date is Thursday, October 1st. Rithm Capital's payout ratio is 158.73%.

Rithm Capital Profile

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.

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