Rithm Capital (NYSE:RITM) Reaches New 1-Year High on Earnings Beat

Key Points

• Rithm Capital reached a new 52-week high of $12.46 after reporting quarterly earnings of $0.54 EPS, exceeding analysts' expectations by $0.02.
• The company declared a quarterly dividend of $0.25 per share, representing an annualized dividend of $1.00 and a yield of 8.10%.
• Multiple analysts have given Rithm Capital a consensus rating of “Buy”, with price targets ranging from $12.50 to $16.00.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) hit a new 52-week high during trading on Monday after the company announced better than expected quarterly earnings. The company traded as high as $12.46 and last traded at $12.44, with a volume of 434142 shares. The stock had previously closed at $12.19.

The real estate investment trust reported $0.54 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.03. Rithm Capital had a return on equity of 19.07% and a net margin of 16.72%. The firm had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.18 billion.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Shareholders of record on Monday, June 30th will be issued a dividend of $0.25 per share. The ex-dividend date is Monday, June 30th. This represents a $1.00 annualized dividend and a yield of 8.09%. Rithm Capital's payout ratio is currently 83.33%.

Analysts Set New Price Targets

RITM has been the topic of several research reports. Wedbush restated an "outperform" rating and set a $14.00 price objective on shares of Rithm Capital in a report on Monday, May 19th. Jones Trading raised their price objective on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a report on Tuesday. Piper Sandler upgraded Rithm Capital from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $12.50 to $14.00 in a report on Monday, April 28th. UBS Group reiterated a "buy" rating and issued a $14.00 price target (up from $13.00) on shares of Rithm Capital in a report on Tuesday, July 15th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $13.00 price target on shares of Rithm Capital in a report on Tuesday, May 20th. Eight analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $13.88.

Institutional Trading of Rithm Capital

A number of institutional investors have recently made changes to their positions in the business. Chicago Partners Investment Group LLC lifted its position in Rithm Capital by 4.1% during the 2nd quarter. Chicago Partners Investment Group LLC now owns 48,471 shares of the real estate investment trust's stock worth $594,000 after acquiring an additional 1,926 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Rithm Capital during the 2nd quarter worth about $24,938,000. Mutual Advisors LLC lifted its position in Rithm Capital by 37.4% during the 2nd quarter. Mutual Advisors LLC now owns 19,953 shares of the real estate investment trust's stock worth $243,000 after acquiring an additional 5,435 shares during the period. Melia Wealth LLC lifted its position in Rithm Capital by 3.3% during the 2nd quarter. Melia Wealth LLC now owns 233,784 shares of the real estate investment trust's stock worth $2,639,000 after acquiring an additional 7,495 shares during the period. Finally, MGO One Seven LLC lifted its position in Rithm Capital by 4.3% during the 2nd quarter. MGO One Seven LLC now owns 876,448 shares of the real estate investment trust's stock worth $9,895,000 after acquiring an additional 35,841 shares during the period. Institutional investors and hedge funds own 44.92% of the company's stock.

Rithm Capital Trading Up 1.1%

The company has a market cap of $6.55 billion, a price-to-earnings ratio of 9.51 and a beta of 1.25. The stock has a 50-day simple moving average of $11.50 and a 200 day simple moving average of $11.36. 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 Company Profile

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.