Rithm Capital (NYSE:RITM) Announces Earnings Results

Rithm Capital (NYSE:RITM) announced its earnings results on Tuesday. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.10, FiscalAI reports. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%.

Rithm Capital Price Performance

Shares of NYSE RITM opened at $9.22 on Tuesday. Rithm Capital has a fifty-two week low of $8.43 and a fifty-two week high of $12.74. The company has a market cap of $5.15 billion, a PE ratio of 8.46 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.28 and a current ratio of 1.28. The business has a 50-day simple moving average of $9.21 and a two-hundred day simple moving average of $9.87.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital’s dividend payout ratio (DPR) is currently 91.74%.

Insider Activity

In related news, Director David Saltzman sold 80,922 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total value of $748,528.50. Following the completion of the transaction, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. This trade represents a 64.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.57% of the stock is currently owned by company insiders.

Institutional Trading of Rithm Capital

Several large investors have recently bought and sold shares of RITM. Los Angeles Capital Management LLC purchased a new position in shares of Rithm Capital in the fourth quarter worth $26,000. Garton & Associates Financial Advisors LLC acquired a new position in shares of Rithm Capital in the 4th quarter valued at $31,000. Advisory Services Network LLC purchased a new position in Rithm Capital in the 3rd quarter worth $43,000. Caitong International Asset Management Co. Ltd acquired a new stake in Rithm Capital during the 3rd quarter worth about $46,000. Finally, Danske Bank A S acquired a new stake in Rithm Capital during the 3rd quarter worth about $46,000. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on RITM. Wedbush reduced their price target on Rithm Capital from $14.00 to $12.50 and set an “outperform” rating for the company in a research report on Friday, May 1st. Wall Street Zen downgraded Rithm Capital from a “hold” rating to a “sell” rating in a research report on Monday, July 6th. Citizens Jmp lifted their target price on Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a research note on Wednesday, May 20th. JonesTrading restated a “buy” rating and issued a $13.50 price target on shares of Rithm Capital in a report on Tuesday, April 28th. Finally, Capital One Financial set a $12.50 price objective on shares of Rithm Capital in a research note on Thursday, April 9th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $13.20.

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.