WINTON GROUP Ltd Makes New Investment in Rithm Capital Corp. $RITM

Key Points

• WINTON GROUP Ltd opened a new position in Rithm Capital in the fourth quarter, buying 184,140 shares valued at about $2.0 million.
• Institutional interest in Rithm Capital remains high, with hedge funds and asset managers increasing holdings and institutions now owning 44.92% of the stock.
• Rithm Capital reported mixed recent results: quarterly EPS of $0.51 missed estimates, while revenue of $1.38 billion beat forecasts, and the stock also offers a 11.0% annualized dividend yield.

WINTON GROUP Ltd bought a new position in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 184,140 shares of the real estate investment trust's stock, valued at approximately $2,007,000.

Other institutional investors have also recently bought and sold shares of the company. AIA Group Ltd grew its holdings in shares of Rithm Capital by 86.9% in the 3rd quarter. AIA Group Ltd now owns 326,436 shares of the real estate investment trust's stock valued at $3,718,000 after buying an additional 151,733 shares during the period. Waterfall Asset Management LLC grew its holdings in shares of Rithm Capital by 169.7% in the 3rd quarter. Waterfall Asset Management LLC now owns 360,573 shares of the real estate investment trust's stock valued at $4,115,000 after buying an additional 226,859 shares during the period. Public Sector Pension Investment Board acquired a new position in shares of Rithm Capital in the 3rd quarter valued at $1,519,000. Envestnet Asset Management Inc. grew its holdings in shares of Rithm Capital by 246.8% in the 3rd quarter. Envestnet Asset Management Inc. now owns 433,567 shares of the real estate investment trust's stock valued at $4,938,000 after buying an additional 308,555 shares during the period. Finally, Magnetar Financial LLC grew its holdings in shares of Rithm Capital by 188.8% in the 3rd quarter. Magnetar Financial LLC now owns 295,499 shares of the real estate investment trust's stock valued at $3,366,000 after buying an additional 193,167 shares during the period. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Price Performance

Shares of NYSE RITM opened at $9.13 on Monday. The firm has a market cap of $5.10 billion, a PE ratio of 8.37 and a beta of 1.14. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital Corp. has a 1-year low of $8.43 and a 1-year high of $12.74. The company has a fifty day moving average price of $9.59 and a 200 day moving average price of $10.36.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts' consensus estimates of $0.53 by ($0.02). The company had revenue of $1.38 billion during 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%. Research analysts predict that Rithm Capital Corp. will post 2.27 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Monday, April 6th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, April 6th. This represents a $1.00 annualized dividend and a yield of 11.0%. Rithm Capital's payout ratio is 91.74%.

Insider Buying and Selling

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the business's stock in a transaction dated 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 of the company's stock, valued at $409,294. The trade was a 64.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.57% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on RITM. Weiss Ratings lowered shares of Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 26th. JonesTrading reissued a "buy" rating and issued a $13.50 price target on shares of Rithm Capital in a report on Tuesday, April 28th. Wedbush decreased their price target on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating for the company in a report on Friday, May 1st. Citizens Jmp upped their target price on shares of Rithm Capital from $12.50 to $13.50 and gave the stock a "market outperform" rating in a research note on Wednesday, May 20th. Finally, Piper Sandler reduced their target price on shares of Rithm Capital from $15.00 to $14.00 and set an "overweight" rating for the company in a research note on Thursday, April 2nd. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $13.61.

Rithm Capital Company 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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