LSV Asset Management Increases Position in Rithm Capital Corp. $RITM

LSV Asset Management lifted its position in Rithm Capital Corp. (NYSE:RITM) by 3.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 5,319,900 shares of the real estate investment trust’s stock after purchasing an additional 199,400 shares during the period. LSV Asset Management’s holdings in Rithm Capital were worth $57,987,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of RITM. CoreCap Advisors LLC increased its stake in shares of Rithm Capital by 99.2% in the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock worth $25,000 after purchasing an additional 1,143 shares in the last quarter. Bessemer Group Inc. increased its stake in shares of Rithm Capital by 658.9% in the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock worth $30,000 after purchasing an additional 2,306 shares in the last quarter. Atlantic Union Bankshares Corp purchased a new stake in shares of Rithm Capital in the third quarter worth $31,000. FNY Investment Advisers LLC purchased a new stake in shares of Rithm Capital in the fourth quarter worth $31,000. Finally, Torren Management LLC purchased a new stake in shares of Rithm Capital in the fourth quarter worth $35,000. 44.92% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Rithm Capital

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction 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 filing with the SEC, which is available at this link. 0.57% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on RITM shares. UBS Group reduced their price objective on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research note on Friday, April 10th. JonesTrading reaffirmed a “buy” rating and set a $13.50 target price on shares of Rithm Capital in a research note on Tuesday, April 28th. Wall Street Zen cut shares of Rithm Capital from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Piper Sandler cut their target price on shares of Rithm Capital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Thursday, April 2nd. Finally, BTIG Research reaffirmed a “buy” rating and set a $16.00 target price on shares of Rithm Capital in a research note on Friday, April 10th. Nine analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $13.61.

Rithm Capital Stock Performance

RITM opened at $9.27 on Friday. The stock has a market capitalization of $5.17 billion, a price-to-earnings ratio of 8.50 and a beta of 1.17. The company has a fifty day moving average of $9.59 and a 200 day moving average of $10.50. Rithm Capital Corp. has a fifty-two week low of $8.43 and a fifty-two week high of $12.74. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.28 and a current ratio of 1.28.

Rithm Capital (NYSE:RITM) last posted its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.02). The company had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. As a group, sell-side analysts forecast that Rithm Capital Corp. will post 2.27 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Monday, April 6th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend was Monday, April 6th. Rithm Capital’s dividend payout ratio (DPR) is presently 91.74%.

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.