Rithm Capital (NYSE:RITM) Releases Earnings Results, Misses Expectations By $0.01 EPS

Rithm Capital (NYSE:RITM) released its earnings results on Tuesday. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.01), FiscalAI reports. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.25 billion.

Rithm Capital Trading Up 0.0%

RITM opened at $10.14 on Tuesday. The business has a 50 day simple moving average of $9.80 and a two-hundred day simple moving average of $10.66. The firm has a market capitalization of $5.66 billion, a price-to-earnings ratio of 9.75 and a beta of 1.19. The company has a debt-to-equity ratio of 2.20, a current ratio of 0.58 and a quick ratio of 0.58. Rithm Capital has a one year low of $8.43 and a one year high of $12.74.

Rithm Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Monday, April 6th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a yield of 9.9%. Rithm Capital’s dividend payout ratio is presently 96.15%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp raised its position in Rithm Capital by 5.3% during the 4th quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust’s stock valued at $117,701,000 after purchasing an additional 530,607 shares during the last quarter. Qube Research & Technologies Ltd raised its position in Rithm Capital by 80.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock valued at $89,878,000 after purchasing an additional 3,524,330 shares during the last quarter. Wellington Management Group LLP raised its position in Rithm Capital by 3.7% during the 4th quarter. Wellington Management Group LLP now owns 6,256,883 shares of the real estate investment trust’s stock valued at $68,200,000 after purchasing an additional 220,654 shares during the last quarter. Morgan Stanley raised its position in Rithm Capital by 15.9% during the 4th quarter. Morgan Stanley now owns 6,079,402 shares of the real estate investment trust’s stock valued at $66,266,000 after purchasing an additional 835,086 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in Rithm Capital by 5.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 5,967,984 shares of the real estate investment trust’s stock valued at $65,051,000 after purchasing an additional 284,623 shares during the last quarter. Institutional investors own 44.92% of the company’s stock.

Wall Street Analysts Forecast Growth

RITM has been the subject of a number of recent research reports. Capital One Financial set a $12.50 target price on Rithm Capital in a research note on Thursday, April 9th. UBS Group lowered their target price on Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research note on Friday, April 10th. Piper Sandler lowered their target price on Rithm Capital from $15.00 to $14.00 and set an “overweight” rating for the company in a research note on Thursday, April 2nd. Wall Street Zen raised Rithm Capital from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Finally, BTIG Research reissued a “buy” rating and issued a $16.00 target price on shares of Rithm Capital in a research note on Friday, April 10th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $14.06.

Rithm Capital Company 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.