Simplify Asset Management Inc. Raises Holdings in Rithm Capital Corp. $RITM

Key Points

• Simplify Asset Management boosted its Rithm Capital stake by 188.7% in the first quarter, adding 220,000 shares to reach 336,593 shares valued at about $3.19 million.
• Rithm Capital reported quarterly EPS of $0.51, missing estimates by $0.02, though revenue of $1.38 billion topped expectations. Analysts still expect the company to earn 2.27 EPS for the full year.
• The company declared a quarterly dividend of $0.25 per share, implying an annualized payout of $1.00 and a high yield of 11.0%; meanwhile, Director David Saltzman sold 80,922 shares in May.

Simplify Asset Management Inc. grew its holdings in Rithm Capital Corp. (NYSE:RITM - Free Report) by 188.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 336,593 shares of the real estate investment trust's stock after buying an additional 220,000 shares during the quarter. Simplify Asset Management Inc. owned about 0.06% of Rithm Capital worth $3,191,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of the business. HB Wealth Management LLC raised its position in Rithm Capital by 13.2% in the first quarter. HB Wealth Management LLC now owns 33,059 shares of the real estate investment trust's stock worth $313,000 after acquiring an additional 3,867 shares in the last quarter. Altus Wealth Group LLC purchased a new stake in shares of Rithm Capital during the 1st quarter worth $103,000. World Investment Advisors boosted its position in shares of Rithm Capital by 7.2% during the 1st quarter. World Investment Advisors now owns 20,439 shares of the real estate investment trust's stock worth $194,000 after purchasing an additional 1,376 shares in the last quarter. New York State Teachers Retirement System acquired a new position in shares of Rithm Capital during the 1st quarter worth $453,000. Finally, Sound Income Strategies LLC acquired a new position in shares of Rithm Capital during the 1st quarter worth $41,000. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Rithm Capital Price Performance

RITM opened at $9.07 on Friday. Rithm Capital Corp. has a 1 year low of $8.43 and a 1 year high of $12.74. The company's 50 day simple moving average is $9.38 and its 200 day simple moving average is $10.09. The stock has a market capitalization of $5.06 billion, a PE ratio of 8.32 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.28 and a current ratio of 1.28.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing the consensus estimate of $0.53 by ($0.02). The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. As a group, sell-side analysts expect that Rithm Capital Corp. will post 2.27 EPS for the current year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, July 2nd. This represents a $1.00 annualized dividend and a yield of 11.0%. Rithm Capital's dividend payout ratio is currently 91.74%.

Insider Buying and Selling

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total value of $748,528.50. Following the transaction, the director directly owned 44,248 shares of the company's stock, valued at $409,294. The trade was a 64.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.57% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms recently commented on RITM. Wedbush decreased their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a report on Friday, May 1st. Weiss Ratings cut shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 26th. Capital One Financial set a $12.50 price target on shares of Rithm Capital in a research report on Thursday, April 9th. Wall Street Zen upgraded shares of Rithm Capital from a "sell" rating to a "hold" rating in a research report on Sunday, June 28th. Finally, Citigroup reissued an "outperform" rating on shares of Rithm Capital in a research note on Wednesday, May 20th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Rithm Capital presently has an average rating of "Moderate Buy" and a consensus price target of $13.20.

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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