Rithm Capital (NYSE:RITM) Posts Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Rithm Capital reported Q1 EPS of $0.51, missing the consensus by $0.01, while revenue beat at $1.38 billion; the firm posted a net margin of 15.55% and ROE of 19.74%.
• The company declared a quarterly dividend of $0.25 (annualized $1.00) implying a yield of about 9.9%, with an ex-dividend date of April 6 and payment on April 30; the payout ratio is roughly 96%.
• Shares trade with a market cap of $5.66 billion and a P/E of 9.75; Wall Street data shows a consensus rating of Moderate Buy with an average price target of $14.06 (seven Buys, one Hold).

Rithm Capital (NYSE:RITM - Get Free Report) announced its quarterly earnings results on Tuesday. The real estate investment trust reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.01), FiscalAI reports. The company had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.25 billion. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%.

Rithm Capital Price Performance

RITM opened at $10.14 on Tuesday. The stock has a 50-day moving average price of $9.80 and a 200-day moving average price of $10.66. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.20. The stock has a market capitalization of $5.66 billion, a P/E ratio of 9.75 and a beta of 1.19.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Monday, April 6th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.9%. The ex-dividend date is Monday, April 6th. Rithm Capital's dividend payout ratio is presently 96.15%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on RITM shares. Weiss Ratings reiterated a "hold (c+)" rating on shares of Rithm Capital in a research report on Monday, December 29th. Piper Sandler reduced their price target on Rithm Capital from $15.00 to $14.00 and set an "overweight" rating for the company in a research report on Thursday, April 2nd. Capital One Financial set a $12.50 price target on Rithm Capital in a research report on Thursday, April 9th. Wall Street Zen upgraded Rithm Capital from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Finally, UBS Group reduced their price target on Rithm Capital from $15.00 to $14.50 and set a "buy" rating for the company in a research report on Friday, April 10th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $14.06.

Hedge Funds Weigh In On Rithm Capital

A number of hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp boosted its holdings in shares of Rithm Capital by 5.3% in the 4th quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock worth $117,701,000 after purchasing an additional 530,607 shares in the last quarter. Qube Research & Technologies Ltd boosted its holdings in shares of Rithm Capital by 80.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after purchasing an additional 3,524,330 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Rithm Capital by 3.7% in the 4th quarter. Wellington Management Group LLP now owns 6,256,883 shares of the real estate investment trust's stock valued at $68,200,000 after acquiring an additional 220,654 shares during the last quarter. Morgan Stanley lifted its stake in shares of 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 acquiring an additional 835,086 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of 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 acquiring an additional 284,623 shares during the last quarter. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

About Rithm Capital

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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