Rithm Capital Corp. (NYSE:RITM) Sees Significant Drop in Short Interest

Key Points

• Rithm Capital Corp. experienced a 39.3% drop in short interest, decreasing from 13,220,000 shares to 8,030,000 shares as of September 30th.
• The company reported $0.54 earnings per share for the last quarter, which exceeded analysts' expectations of $0.51.
• Rithm Capital recently announced a quarterly dividend of $0.25 per share, representing a 9.2% annualized yield with a payout ratio of 76.92%.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) was the recipient of a large decrease in short interest during the month of September. As of September 30th, there was short interest totaling 8,030,000 shares, a decrease of 39.3% from the September 15th total of 13,220,000 shares. Approximately 1.5% of the shares of the company are sold short. Based on an average trading volume of 5,440,000 shares, the short-interest ratio is presently 1.5 days. Based on an average trading volume of 5,440,000 shares, the short-interest ratio is presently 1.5 days. Approximately 1.5% of the shares of the company are sold short.

Institutional Investors Weigh In On Rithm Capital

A number of large investors have recently bought and sold shares of RITM. SouthState Corp acquired a new stake in Rithm Capital during the 1st quarter valued at $25,000. Cullen Frost Bankers Inc. acquired a new stake in Rithm Capital during the 2nd quarter valued at $30,000. Fourth Dimension Wealth LLC grew its holdings in Rithm Capital by 50.0% during the 1st quarter. Fourth Dimension Wealth LLC now owns 3,000 shares of the real estate investment trust's stock valued at $34,000 after buying an additional 1,000 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in Rithm Capital during the 2nd quarter valued at $43,000. Finally, SVB Wealth LLC acquired a new stake in Rithm Capital during the 1st quarter valued at $57,000. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Stock Performance

RITM opened at $10.93 on Tuesday. The stock has a market cap of $5.79 billion, a P/E ratio of 8.40 and a beta of 1.31. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. The stock's 50 day simple moving average is $11.86 and its 200 day simple moving average is $11.49. Rithm Capital has a 1-year low of $9.13 and a 1-year high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly 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 analysts' expectations of $1.18 billion. Rithm Capital had a return on equity of 18.89% and a net margin of 16.72%. As a group, equities analysts anticipate that Rithm Capital will post 1.93 EPS for the current fiscal year.

Rithm Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Wednesday, October 1st will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 9.2%. The ex-dividend date is Wednesday, October 1st. Rithm Capital's dividend payout ratio is 76.92%.

Analyst Ratings Changes

Several research firms have issued reports on RITM. Weiss Ratings reiterated a "buy (b)" rating on shares of Rithm Capital in a research report on Wednesday, October 8th. Royal Bank Of Canada boosted their target price on Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Jones Trading boosted their target price on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. UBS Group boosted their target price on Rithm Capital from $14.00 to $16.00 and gave the stock a "buy" rating in a research report on Wednesday, September 3rd. Finally, Wedbush reiterated an "outperform" rating and set a $14.00 target price on shares of Rithm Capital in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating and nine have given a Buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $14.25.

About Rithm Capital

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.

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