Rithm Capital (NYSE:RITM) Issues Earnings Results

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) issued its quarterly earnings results on Monday. The real estate investment trust reported $0.54 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.03, Zacks reports. Rithm Capital had a return on equity of 19.07% and a net margin of 16.72%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.18 billion.

Rithm Capital Trading Down 0.5%

Rithm Capital stock traded down $0.07 during mid-day trading on Thursday, hitting $12.12. The stock had a trading volume of 3,087,594 shares, compared to its average volume of 4,470,074. The stock has a 50-day simple moving average of $11.54 and a two-hundred day simple moving average of $11.37. The stock has a market capitalization of $6.42 billion, a PE ratio of 9.32 and a beta of 1.25. Rithm Capital has a 12 month low of $9.13 and a 12 month high of $12.59. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 1.68.

Rithm Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 31st. Investors of record on Monday, June 30th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 8.25%. The ex-dividend date of this dividend is Monday, June 30th. Rithm Capital's dividend payout ratio is 76.92%.

Hedge Funds Weigh In On Rithm Capital

Hedge funds have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. boosted its holdings in Rithm Capital by 75.6% in the first 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 acquiring an additional 662,585 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust's stock valued at $889,000 after acquiring an additional 13,166 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in Rithm Capital by 5.3% during the first 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 last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in Rithm Capital by 14.3% during the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after buying an additional 881 shares during the last quarter. Institutional investors own 44.92% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on RITM shares. Jones Trading upped their target price on Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a research note on Tuesday. UBS Group restated a "buy" rating and issued a $14.00 target price (up from $13.00) on shares of Rithm Capital in a research note on Tuesday, July 15th. BTIG Research restated a "buy" rating and issued a $16.00 target price on shares of Rithm Capital in a research note on Friday, April 25th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $13.00 price target on shares of Rithm Capital in a research report on Tuesday, May 20th. Finally, Keefe, Bruyette & Woods upped their price target on Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a research report on Tuesday. Eight analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $13.88.

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.