Rithm Capital Corp. (NYSE:RITM) Short Interest Down 14.8% in April

Key Points

• Short interest down 14.8% in April to 29,993,096 shares (about 5.4% of shares sold short) with a short-interest ratio of 4.3 days based on average daily volume.
• Analyst sentiment is positive with 7 Buy and 1 Hold, an average rating of "Moderate Buy" and an average price target of $13.63, though several firms trimmed targets recently.
• Rithm pays a 10.2% dividend yield ($1.00 annualized) with a 91.7% payout ratio; Q1 EPS of $0.51 missed estimates by $0.02 while revenue beat, and shares trade near $9.80 (market cap ~$5.47B, P/E ~9).

Rithm Capital Corp. (NYSE:RITM - Get Free Report) was the target of a significant decline in short interest in April. As of April 15th, there was short interest totaling 29,993,096 shares, a decline of 14.8% from the March 31st total of 35,218,399 shares. Based on an average daily volume of 6,934,491 shares, the short-interest ratio is presently 4.3 days. Approximately 5.4% of the shares of the company are sold short.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on RITM. JonesTrading reiterated a "buy" rating and set a $13.50 target price on shares of Rithm Capital in a research report on Tuesday. Piper Sandler cut their target price on Rithm Capital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. Keefe, Bruyette & Woods cut their target price on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday. Wall Street Zen upgraded Rithm Capital from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Finally, Capital One Financial set a $12.50 price target on Rithm Capital in a research report on Thursday, April 9th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Rithm Capital has an average rating of "Moderate Buy" and an average price target of $13.63.

Rithm Capital Price Performance

Shares of RITM traded up $0.02 on Friday, reaching $9.80. The stock had a trading volume of 5,648,587 shares, compared to its average volume of 10,640,984. The firm has a market capitalization of $5.47 billion, a PE ratio of 8.99 and a beta of 1.19. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. The firm has a 50-day moving average of $9.75 and a 200 day moving average of $10.64. Rithm Capital has a twelve month low of $8.43 and a twelve month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly 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 firm 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 19.69% and a net margin of 14.44%. Sell-side analysts expect that Rithm Capital will post 2.31 EPS for the current year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Monday, April 6th were issued a $0.25 dividend. The ex-dividend date was Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.2%. Rithm Capital's dividend payout ratio is currently 91.74%.

Institutional Investors Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently modified their holdings of the company. CoreCap Advisors LLC lifted its stake in shares of Rithm Capital by 99.2% during the 4th quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 1,143 shares during the period. Los Angeles Capital Management LLC acquired a new stake in shares of Rithm Capital during the fourth quarter worth $26,000. Bessemer Group Inc. boosted its holdings in shares of Rithm Capital by 658.9% during the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust's stock worth $30,000 after purchasing an additional 2,306 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Rithm Capital during the third quarter worth $31,000. Finally, FNY Investment Advisers LLC acquired a new stake in shares of Rithm Capital during the fourth quarter worth $31,000. Institutional investors and hedge funds own 44.92% of the company's stock.

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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