Rithm Capital (NYSE:RITM) Reaches New 12-Month 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)'s stock price reached a new 52-week high during mid-day trading on Monday following a better than expected earnings announcement. The stock traded as high as $12.46 and last traded at $12.44, with a volume of 434142 shares traded. The stock had previously closed at $12.19.

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

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Stockholders of record on Monday, June 30th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.3%. The ex-dividend date is Monday, June 30th. Rithm Capital's dividend payout ratio (DPR) is 76.92%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RITM. Wedbush restated an "outperform" rating and set a $14.00 price objective on shares of Rithm Capital in a research report on Monday, May 19th. Jones Trading lifted their price objective on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a research report on Tuesday. Keefe, Bruyette & Woods lifted their price objective on Rithm Capital from $13.50 to $14.00 and gave the stock an "outperform" rating in a research report on Tuesday. Royal Bank Of Canada reissued an "outperform" rating and issued a $13.00 price objective on shares of Rithm Capital in a research report on Tuesday, May 20th. Finally, Piper Sandler raised Rithm Capital from a "neutral" rating to an "overweight" rating and lifted their price objective for the stock from $12.50 to $14.00 in a research report on Monday, April 28th. Eight research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Rithm Capital has an average rating of "Buy" and an average price target of $13.88.

Hedge Funds Weigh In On Rithm Capital

A number of institutional investors and hedge funds have recently made changes to their positions in RITM. Barclays PLC increased its position in shares of Rithm Capital by 1.2% during the fourth quarter. Barclays PLC now owns 219,670 shares of the real estate investment trust's stock worth $2,379,000 after acquiring an additional 2,701 shares in the last quarter. Wedbush Securities Inc. lifted its position in shares of Rithm Capital by 13.7% during the fourth quarter. Wedbush Securities Inc. now owns 231,682 shares of the real estate investment trust's stock valued at $2,509,000 after purchasing an additional 27,924 shares in the last quarter. KBC Group NV lifted its position in shares of Rithm Capital by 24.0% during the first quarter. KBC Group NV now owns 22,846 shares of the real estate investment trust's stock valued at $262,000 after purchasing an additional 4,423 shares in the last quarter. Amalgamated Bank lifted its position in shares of Rithm Capital by 5.9% during the first quarter. Amalgamated Bank now owns 27,064 shares of the real estate investment trust's stock valued at $310,000 after purchasing an additional 1,502 shares in the last quarter. Finally, Edgestream Partners L.P. lifted its position in shares of Rithm Capital by 341.5% during the first quarter. Edgestream Partners L.P. now owns 688,882 shares of the real estate investment trust's stock valued at $7,888,000 after purchasing an additional 532,866 shares in the last quarter. Institutional investors own 44.92% of the company's stock.

Rithm Capital Price Performance

The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 1.68. The business's 50-day moving average is $11.54 and its two-hundred day moving average is $11.37. The company has a market capitalization of $6.41 billion, a P/E ratio of 9.30 and a beta of 1.25.

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.