Rithm Capital Corp. $RITM Shares Sold by First Trust Advisors LP

First Trust Advisors LP lessened its holdings in shares of Rithm Capital Corp. (NYSE:RITM) by 35.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,731,999 shares of the real estate investment trust’s stock after selling 1,490,508 shares during the period. First Trust Advisors LP’s holdings in Rithm Capital were worth $25,899,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Curi Capital LLC grew its position in Rithm Capital by 0.7% during the 2nd quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust’s stock worth $1,358,000 after purchasing an additional 829 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after buying an additional 881 shares during the period. City Holding Co. boosted its stake in shares of Rithm Capital by 35.1% in the fourth quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust’s stock worth $42,000 after buying an additional 1,000 shares during the last quarter. Westbourne Investment Advisors Inc. boosted its stake in shares of Rithm Capital by 1.8% in the fourth quarter. Westbourne Investment Advisors Inc. now owns 55,500 shares of the real estate investment trust’s stock worth $605,000 after buying an additional 1,000 shares during the last quarter. Finally, Fort Sheridan Advisors LLC grew its holdings in Rithm Capital by 0.3% during the fourth quarter. Fort Sheridan Advisors LLC now owns 367,164 shares of the real estate investment trust’s stock worth $4,002,000 after acquiring an additional 1,000 shares during the period. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Rithm Capital Price Performance

NYSE:RITM opened at $9.78 on Wednesday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital Corp. has a 52 week low of $8.43 and a 52 week high of $12.74. The stock’s 50-day moving average price is $9.23 and its 200-day moving average price is $9.86. The stock has a market capitalization of $5.46 billion, a PE ratio of 8.97 and a beta of 1.14.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10. The company had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.43 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. As a group, equities analysts expect that Rithm Capital Corp. will post 2.23 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be given a $0.25 dividend. The ex-dividend date is Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.2%. Rithm Capital’s payout ratio is 91.74%.

Key Stories Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Rithm reported second-quarter earnings available for distribution of $338.9 million, or $0.60 per diluted share, exceeding the $0.50 analyst consensus and rising from $0.54 a year earlier. Rithm Q2 Earnings Top Estimates
• Positive Sentiment: Rithm Asset Management’s assets under management increased to approximately $61 billion from $59 billion in the first quarter, supporting the company’s strategy of building a diversified, fee-generating owner-operator platform. Rithm Capital Q2 Earnings and AUM Growth
• Positive Sentiment: Newrez generated $307.6 million of pre-tax operating income excluding specified non-operating items. Origination production reached $15.9 billion, while Genesis Capital’s origination volume rose 52% year over year to $1.9 billion. Rithm Capital Q2 Operating Results
• Positive Sentiment: The company declared a common dividend of $0.25 per share and reported book value of $12.33 per common share, both relevant to income-focused investors. Brokerages set an average price target of $13.20, implying potential upside based on the cited coverage. Brokerages Set Rithm Capital Target Price
• Neutral Sentiment: Management highlighted resilient performance despite an uncertain macroeconomic and housing-market environment, with strategic investments and asset-management inflows helping offset market challenges. Rithm Capital Q2 Earnings Call Highlights
• Negative Sentiment: Total revenue was $1.282 billion, below the $1.43 billion consensus estimate. GAAP net income attributable to common stockholders fell to $20.2 million, or $0.04 per share, underscoring the difference between reported GAAP results and the stronger non-GAAP distributable earnings figure. Rithm Capital Announces Second Quarter Results

Wall Street Analyst Weigh In

Several research analysts recently weighed in on RITM shares. Royal Bank Of Canada reduced their price target on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a research report on Friday, May 1st. Capital One Financial set a $12.50 price objective on shares of Rithm Capital in a research note on Thursday, April 9th. Wedbush cut their target price on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating for the company in a report on Friday, May 1st. Weiss Ratings lowered shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Finally, Wall Street Zen cut shares of Rithm Capital from a “hold” rating to a “sell” rating in a research note on Monday, July 6th. Ten research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Rithm Capital currently has a consensus rating of “Moderate Buy” and an average target price of $13.20.

Insider Buying and Selling at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction 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 represents a 64.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.57% of the stock is currently owned by insiders.

Rithm Capital Profile

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.