Vanguard Group Inc. Boosts Stake in Rithm Capital Corp. $RITM

Key Points

• Vanguard Group Inc. increased its stake in Rithm Capital by 2.4% in Q4, buying 1,191,923 shares to hold 50,282,841 shares (about 9.07% of the company) valued at roughly $548.1 million.
• Rithm pays a quarterly dividend of $0.25 (annualized $1.00) for a yield of 10.4% and has a dividend payout ratio of 91.74%.
• Rithm reported Q1 EPS of $0.51 (missed by $0.02) with revenue of $1.38 billion, the stock trades at a PE of 8.85, and analysts' consensus is a "Moderate Buy" with an average target of $13.63.

Vanguard Group Inc. lifted its stake in Rithm Capital Corp. (NYSE:RITM - Free Report) by 2.4% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 50,282,841 shares of the real estate investment trust's stock after purchasing an additional 1,191,923 shares during the period. Vanguard Group Inc. owned 9.07% of Rithm Capital worth $548,083,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of RITM. Curi Capital LLC boosted its holdings in Rithm Capital by 0.7% in the 2nd quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust's stock worth $1,358,000 after buying an additional 829 shares during the period. Geneos Wealth Management Inc. boosted its holdings in shares of Rithm Capital by 14.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock valued at $81,000 after purchasing an additional 881 shares during the last quarter. City Holding Co. lifted its holdings in shares of Rithm Capital by 35.1% in the 4th quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust's stock valued at $42,000 after acquiring an additional 1,000 shares during the last quarter. Westbourne Investment Advisors Inc. lifted its holdings in shares of Rithm Capital by 1.8% in the 4th quarter. Westbourne Investment Advisors Inc. now owns 55,500 shares of the real estate investment trust's stock valued at $605,000 after acquiring an additional 1,000 shares during the last quarter. Finally, Signaturefd LLC lifted its holdings in shares of Rithm Capital by 2.3% in the 3rd quarter. Signaturefd LLC now owns 45,012 shares of the real estate investment trust's stock valued at $513,000 after acquiring an additional 1,009 shares during the last quarter. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Rithm Capital Price Performance

NYSE RITM opened at $9.65 on Tuesday. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58. The firm's 50 day moving average price is $9.75 and its 200-day moving average price is $10.63. Rithm Capital Corp. has a 52-week low of $8.43 and a 52-week high of $12.74. The company has a market cap of $5.38 billion, a PE ratio of 8.85 and a beta of 1.17.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. The business had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.27 billion. Sell-side analysts forecast that Rithm Capital Corp. will post 2.28 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Monday, April 6th were paid a dividend of $0.25 per share. The ex-dividend date was Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.4%. Rithm Capital's dividend payout ratio (DPR) is currently 91.74%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Wall Street Zen lowered shares of Rithm Capital from a "buy" rating to a "hold" rating in a research report on Saturday. Piper Sandler reduced their price objective on shares of Rithm Capital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. JonesTrading reissued a "buy" rating and issued a $13.50 price objective on shares of Rithm Capital in a research report on Tuesday, April 28th. BTIG Research reissued a "buy" rating and issued a $16.00 price objective on shares of Rithm Capital in a research report on Friday, April 10th. Finally, Royal Bank Of Canada reduced their price objective on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $13.63.

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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