Teachers Retirement System of The State of Kentucky Takes $1.31 Million Position in Rithm Capital Corp. $RITM

Key Points

• Teachers Retirement System of Kentucky initiated a new position in Rithm Capital, buying 138,000 shares worth about $1.31 million in the first quarter.
• Institutional ownership remains significant, with large investors like Vanguard, State Street, and Geode Capital adding to their stakes; overall, hedge funds and institutions own 44.92% of the stock.
• Rithm Capital continues to offer a high dividend yield, declaring a quarterly payout of $0.25 per share for a 10.8% annualized yield, while analysts currently have a Moderate Buy consensus and average price target of $13.20.

Teachers Retirement System of The State of Kentucky purchased a new position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The fund purchased 138,000 shares of the real estate investment trust's stock, valued at approximately $1,308,000.

Several other large investors have also bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Rithm Capital by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 50,282,841 shares of the real estate investment trust's stock worth $548,083,000 after acquiring an additional 1,191,923 shares during the period. State Street Corp lifted its stake in shares of Rithm Capital by 5.3% in the 4th quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock valued at $117,701,000 after purchasing an additional 530,607 shares during the period. Geode Capital Management LLC lifted its stake in shares of Rithm Capital by 4.8% in the 4th quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust's stock valued at $104,904,000 after purchasing an additional 443,144 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Rithm Capital by 80.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after purchasing an additional 3,524,330 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Rithm Capital in the 4th quarter worth $77,067,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RITM. Compass Point began coverage on Rithm Capital in a report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective for the company. UBS Group reduced their target price on Rithm Capital from $15.00 to $14.50 and set a "buy" rating on the stock in a report on Friday, April 10th. Keefe, Bruyette & Woods lowered their price target on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. BTIG Research lowered their price target 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. Finally, Piper Sandler cut their price target on shares of Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.20.

Rithm Capital Trading Up 0.3%

NYSE RITM opened at $9.24 on Thursday. The firm has a market cap of $5.16 billion, a P/E ratio of 8.48 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.28 and a quick ratio of 1.28. The stock's 50-day moving average is $9.26 and its 200-day moving average is $9.97. Rithm Capital Corp. has a one year low of $8.43 and a one year high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. The business had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.27 billion. Sell-side analysts anticipate that Rithm Capital Corp. will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.8%. Rithm Capital's dividend payout ratio is currently 91.74%.

Insider Activity

In related news, Director David Saltzman sold 80,922 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total transaction of $748,528.50. Following the sale, the director directly owned 44,248 shares in the company, valued at $409,294. This trade represents a 64.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.57% of the stock is owned by corporate insiders.

About Rithm Capital

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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