Rithm Capital (NYSE:RITM) Announces Earnings Results

Key Points

• Rithm Capital reported quarterly earnings of $0.60 per share, exceeding analysts’ consensus estimate of $0.50. The company posted a 14.44% net margin and 19.48% return on equity.
• The REIT declared a quarterly dividend of $0.25 per share, equivalent to $1.00 annually and a 10.8% dividend yield; its payout ratio is 91.74%.
• Analyst sentiment remains generally positive, with 10 Buy ratings and one Sell rating and a consensus price target of $13.20, compared with the stock’s opening price of $9.22.

Rithm Capital (NYSE:RITM - Get Free Report) released its earnings results on Tuesday. The real estate investment trust reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.10, FiscalAI reports. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%.

Rithm Capital Stock Up 1.2%

NYSE RITM opened at $9.22 on Tuesday. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a 50-day simple moving average of $9.21 and a 200 day simple moving average of $9.87. Rithm Capital has a twelve month low of $8.43 and a twelve month high of $12.74. The stock has a market cap of $5.15 billion, a PE ratio of 8.46 and a beta of 1.14.

Rithm Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.8%. Rithm Capital's dividend payout ratio is currently 91.74%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Weiss Ratings lowered Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, May 26th. Citizens Jmp increased their target price on Rithm Capital from $12.50 to $13.50 and gave the company a "market outperform" rating in a research note on Wednesday, May 20th. Royal Bank Of Canada lowered their target price on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Wedbush dropped their price target on Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Finally, Piper Sandler cut their price target on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Ten research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $13.20.

Insiders Place Their Bets

In related news, Director David Saltzman sold 80,922 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the transaction, the director directly owned 44,248 shares in the company, valued at $409,294. The trade was a 64.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.57% of the stock is currently owned by company insiders.

Institutional Trading of Rithm Capital

Hedge funds have recently modified their holdings of the company. State Street Corp increased its position in shares of Rithm Capital by 5.3% during the fourth quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock valued at $117,701,000 after purchasing an additional 530,607 shares during the period. Qube Research & Technologies Ltd boosted its stake in Rithm Capital by 80.7% during the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after buying an additional 3,524,330 shares in the last quarter. Wellington Management Group LLP boosted its stake in Rithm Capital by 3.7% during the fourth quarter. Wellington Management Group LLP now owns 6,256,883 shares of the real estate investment trust's stock worth $68,200,000 after buying an additional 220,654 shares in the last quarter. Morgan Stanley increased its holdings in Rithm Capital by 15.9% in the 4th quarter. Morgan Stanley now owns 6,079,402 shares of the real estate investment trust's stock valued at $66,266,000 after buying an additional 835,086 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its holdings in Rithm Capital by 5.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 5,967,984 shares of the real estate investment trust's stock valued at $65,051,000 after buying an additional 284,623 shares during the period. Institutional investors 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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