Royal Bank of Canada Acquires 331,513 Shares of Rithm Capital Corp. $RITM

Key Points

• Royal Bank of Canada increased its Rithm Capital stake by 12.5%, purchasing 331,513 shares to own 2.97 million shares valued at approximately $28.2 million, or 0.53% of the company.
• Analysts maintain a generally positive outlook, with 10 Buy ratings and one Hold rating, producing a consensus “Moderate Buy” rating and a $13.20 target price.
• Rithm Capital reported quarterly EPS of $0.60, beating estimates by $0.10, and paid a quarterly dividend of $0.25, equivalent to a 9.8% annualized yield.

Royal Bank of Canada raised its holdings in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 12.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,974,882 shares of the real estate investment trust's stock after purchasing an additional 331,513 shares during the quarter. Royal Bank of Canada owned approximately 0.53% of Rithm Capital worth $28,202,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Empowered Funds LLC bought a new position in shares of Rithm Capital in the first quarter valued at about $387,000. The Manufacturers Life Insurance Company grew its stake in Rithm Capital by 13.2% in the 1st quarter. The Manufacturers Life Insurance Company now owns 148,880 shares of the real estate investment trust's stock valued at $1,411,000 after buying an additional 17,407 shares during the last quarter. Infrastructure Capital Advisors LLC grew its stake in Rithm Capital by 15.6% in the 1st quarter. Infrastructure Capital Advisors LLC now owns 27,723 shares of the real estate investment trust's stock valued at $263,000 after buying an additional 3,731 shares during the last quarter. Quantinno Capital Management LP raised its holdings in Rithm Capital by 156.5% in the 1st quarter. Quantinno Capital Management LP now owns 425,985 shares of the real estate investment trust's stock valued at $4,038,000 after acquiring an additional 259,929 shares during the period. Finally, SummitTX Capital L.P. lifted its position in Rithm Capital by 88.8% during the first quarter. SummitTX Capital L.P. now owns 120,601 shares of the real estate investment trust's stock worth $1,143,000 after acquiring an additional 56,715 shares during the last quarter. 44.92% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on RITM. Compass Point started coverage on Rithm Capital in a research report on Monday, June 8th. They issued a "buy" rating and a $14.00 target price on the stock. BTIG Research dropped their price target on Rithm Capital from $16.00 to $13.00 and set a "buy" rating for the company in a report on Tuesday, June 16th. Weiss Ratings upgraded Rithm Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Wedbush decreased their price objective on Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a report on Friday, May 1st. Finally, Royal Bank Of Canada lowered their price objective on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $13.20.

Insider Buying and Selling at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the completion of the sale, the director directly owned 44,248 shares in the company, valued at approximately $409,294. This represents a 64.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.57% of the company's stock.

Rithm Capital Stock Up 1.9%

Shares of RITM opened at $10.25 on Wednesday. Rithm Capital Corp. has a 12 month low of $8.43 and a 12 month high of $12.74. The firm's 50 day moving average is $9.30 and its 200-day moving average is $9.81. The stock has a market capitalization of $5.72 billion, a PE ratio of 17.08 and a beta of 1.14. The company has a current ratio of 0.90, a quick ratio of 1.28 and a debt-to-equity ratio of 2.19.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.10. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. Equities research analysts forecast that Rithm Capital Corp. will post 2.22 EPS for the current year.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.00 annualized dividend and a yield of 9.8%. Rithm Capital's payout ratio is currently 166.67%.

Rithm Capital Profile

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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