Squarepoint Ops LLC Makes New Investment in Rithm Capital Corp. $RITM

Key Points

• Squarepoint Ops LLC acquired 274,146 shares of Rithm Capital during the second quarter, worth approximately $2.57 million. Institutional investors collectively own 44.92% of the company.
• Rithm Capital reported quarterly EPS of $0.60, exceeding analysts’ $0.50 estimate. The company’s stock recently traded near $9.76, while analysts maintain a “Moderate Buy” consensus and an average price target of $13.15.
• The REIT pays a quarterly dividend of $0.25 per share, equivalent to a 10.3% annualized yield, though its payout ratio is high at 166.67%.

Squarepoint Ops LLC acquired a new stake in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 274,146 shares of the real estate investment trust's stock, valued at approximately $2,574,000.

A number of other hedge funds also recently bought and sold shares of RITM. Los Angeles Capital Management LLC bought a new position in Rithm Capital during the fourth quarter valued at approximately $26,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of Rithm Capital in the 4th quarter worth approximately $31,000. Altshuler Shaham Ltd boosted its stake in shares of Rithm Capital by 100.0% in the 1st quarter. Altshuler Shaham Ltd now owns 3,600 shares of the real estate investment trust's stock valued at $34,000 after purchasing an additional 1,800 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of Rithm Capital during the 3rd quarter valued at $43,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Rithm Capital during the third quarter valued at about $46,000. Institutional investors own 44.92% of the company's stock.

Rithm Capital Trading Up 0.2%

NYSE RITM opened at $9.76 on Monday. The stock has a market cap of $5.45 billion, a P/E ratio of 16.26, a price-to-earnings-growth ratio of 0.62 and a beta of 1.12. Rithm Capital Corp. has a fifty-two week low of $8.43 and a fifty-two week high of $12.68. The stock has a 50 day simple moving average of $9.80 and a two-hundred day simple moving average of $9.62. The company has a debt-to-equity ratio of 2.19, a quick ratio of 0.76 and a current ratio of 0.76.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.10. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. On average, analysts forecast that Rithm Capital Corp. will post 2.26 earnings per share for the current year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.3%. Rithm Capital's payout ratio is presently 166.67%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. UBS Group reduced their price target on Rithm Capital from $14.50 to $14.00 and set a "buy" rating on the stock in a research report on Friday, August 21st. Citigroup reiterated an "outperform" rating on shares of Rithm Capital in a research report on Wednesday, May 20th. BTIG Research dropped their price objective on Rithm Capital from $16.00 to $13.00 and set a "buy" rating for the company in a research note on Tuesday, June 16th. Piper Sandler decreased their target price on shares of Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a research note on Thursday, July 2nd. Finally, Weiss Ratings upgraded shares of Rithm Capital from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, August 25th. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Rithm Capital presently has a consensus rating of "Moderate Buy" and an average target price of $13.15.

Insider Activity

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director directly owned 82,259 shares in the company, valued at $837,396.62. This trade represents a 15.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 0.57% of the stock is owned by corporate insiders.

About Rithm Capital

Rithm Capital Corporation NYSE: RITM is a real estate investment trust that focuses on investments and operating businesses tied to the residential mortgage and real estate markets. The company seeks to generate income from mortgage servicing rights, residential mortgage loans, mortgage-backed securities and other related assets.

Rithm also owns and operates businesses involved in mortgage origination, servicing and related financial services. Its platform includes Newrez, a mortgage company that provides loan origination, servicing and associated services to homeowners and borrowers in the United States.

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