Wellington Management Group LLP Acquires 1,307,276 Shares of Rithm Capital Corp. $RITM

Key Points

• Wellington Management Group LLP increased its stake in Rithm Capital Corp. by 36.3%, acquiring an additional 1,307,276 shares, bringing its total ownership to approximately $56.19 million.
• Rithm Capital's latest earnings report revealed an EPS of $0.54, surpassing analysts' expectations by $0.03, and reported revenue of $1.22 billion for the quarter.
• Analysts are optimistic about Rithm Capital, with the stock receiving several upgrades and an average target price of $14.00, while the dividend yield stands at 8.0%.

Wellington Management Group LLP grew its position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 36.3% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,907,737 shares of the real estate investment trust's stock after buying an additional 1,307,276 shares during the quarter. Wellington Management Group LLP owned approximately 0.93% of Rithm Capital worth $56,194,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in RITM. Balyasny Asset Management L.P. grew its position in Rithm Capital by 48.6% in the fourth quarter. Balyasny Asset Management L.P. now owns 6,535,525 shares of the real estate investment trust's stock worth $70,780,000 after acquiring an additional 2,136,342 shares in the last quarter. Mackenzie Financial Corp lifted its stake in shares of Rithm Capital by 288.6% in the 1st quarter. Mackenzie Financial Corp now owns 2,725,392 shares of the real estate investment trust's stock valued at $31,206,000 after purchasing an additional 2,024,090 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Rithm Capital by 78.3% in the 4th quarter. First Trust Advisors LP now owns 3,304,999 shares of the real estate investment trust's stock valued at $35,793,000 after purchasing an additional 1,451,829 shares during the last quarter. Nomura Holdings Inc. bought a new stake in Rithm Capital in the fourth quarter worth $13,913,000. Finally, Nuveen LLC acquired a new position in Rithm Capital during the first quarter worth $14,086,000. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Stock Performance

Shares of RITM traded down $0.04 during trading hours on Tuesday, reaching $12.46. 4,490,930 shares of the company traded hands, compared to its average volume of 4,552,037. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.40 and a current ratio of 0.40. The stock's fifty day moving average is $11.91 and its 200 day moving average is $11.49. Rithm Capital Corp. has a 1-year low of $9.13 and a 1-year high of $12.61. The stock has a market cap of $6.60 billion, a P/E ratio of 9.58 and a beta of 1.25.

Rithm Capital (NYSE:RITM - Get Free Report) last released its earnings results on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. The business had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.18 billion. Rithm Capital had a return on equity of 18.89% and a net margin of 16.72%. Equities research analysts anticipate that Rithm Capital Corp. will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.0%. The ex-dividend date was Monday, June 30th. Rithm Capital's dividend payout ratio is presently 76.92%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on RITM. Piper Sandler raised Rithm Capital from a "neutral" rating to an "overweight" rating and boosted their price target for the stock from $12.50 to $14.00 in a research report on Monday, April 28th. UBS Group reissued a "buy" rating and issued a $14.00 price objective (up from $13.00) on shares of Rithm Capital in a research note on Tuesday, July 15th. Wedbush reaffirmed an "outperform" rating and set a $14.00 target price on shares of Rithm Capital in a research report on Wednesday, August 6th. Jones Trading increased their price target on Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a report on Tuesday, July 29th. Finally, Royal Bank Of Canada boosted their price objective on shares of Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating and eight have given a Buy rating to the company's stock. According to MarketBeat.com, Rithm Capital currently has an average rating of "Buy" and a consensus price target of $14.00.

Rithm Capital Company Profile

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.