Rithm Capital (NYSE:RITM) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Rithm Capital reported a quarterly earnings per share (EPS) of $0.54, surpassing the consensus estimate of $0.52 by $0.02.
• The company announced a quarterly dividend of $0.25, with a yield of 8.21%, which will be paid on July 31st.
• Rithm Capital has received multiple buy ratings from analysts, with a consensus target price of $13.69 and forecasts indicating potential growth.

Rithm Capital (NYSE:RITM - Get Free Report) released its earnings results on Monday. The real estate investment trust reported $0.54 EPS for the quarter, beating the consensus estimate of $0.51 by $0.03, Zacks reports. The firm had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.18 billion. Rithm Capital had a net margin of 15.06% and a return on equity of 18.38%.

Rithm Capital Stock Performance

RITM traded up $0.03 on Monday, reaching $12.22. The company had a trading volume of 5,932,414 shares, compared to its average volume of 4,051,456. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.35 and a current ratio of 0.35. The company's fifty day moving average is $11.50 and its 200 day moving average is $11.36. Rithm Capital has a fifty-two week low of $9.13 and a fifty-two week high of $12.59. The stock has a market cap of $6.48 billion, a P/E ratio of 10.18 and a beta of 1.25.

Rithm Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 31st. Investors of record on Monday, June 30th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Monday, June 30th. This represents a $1.00 dividend on an annualized basis and a yield of 8.18%. Rithm Capital's dividend payout ratio (DPR) is currently 83.33%.

Institutional Investors Weigh In On Rithm Capital

Institutional investors and hedge funds have recently bought and sold shares of the company. Geneos Wealth Management Inc. lifted its holdings in shares of Rithm Capital by 14.3% in the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after acquiring an additional 881 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in Rithm Capital by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust's stock valued at $17,627,000 after buying an additional 662,585 shares during the last quarter. NewEdge Advisors LLC boosted its position in Rithm Capital by 5.3% during the 1st quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust's stock worth $359,000 after buying an additional 1,585 shares during the period. Finally, AQR Capital Management LLC boosted its position in Rithm Capital by 20.4% during the 1st quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust's stock worth $889,000 after buying an additional 13,166 shares during the period. Institutional investors own 44.92% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Piper Sandler upgraded shares of Rithm Capital from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $12.50 to $14.00 in a research report on Monday, April 28th. BTIG Research reiterated a "buy" rating and set a $16.00 target price on shares of Rithm Capital in a research report on Friday, April 25th. Jones Trading reiterated a "buy" rating and set a $12.50 target price on shares of Rithm Capital in a research report on Tuesday, April 29th. Wedbush reiterated an "outperform" rating and set a $14.00 target price on shares of Rithm Capital in a research report on Monday, May 19th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $13.00 target price on shares of Rithm Capital in a research report on Tuesday, May 20th. Eight investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Rithm Capital has a consensus rating of "Buy" and an average price target of $13.69.

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.