First Trust Advisors LP Trims Position in Rithm Capital Corp. $RITM

First Trust Advisors LP lowered its stake in shares of Rithm Capital Corp. (NYSE:RITM) by 15.5% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,309,516 shares of the real estate investment trust’s stock after selling 607,673 shares during the quarter. First Trust Advisors LP owned about 0.60% of Rithm Capital worth $37,695,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Bessemer Group Inc. raised its stake in Rithm Capital by 658.9% during the 3rd quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock valued at $30,000 after acquiring an additional 2,306 shares during the last quarter. Atlantic Union Bankshares Corp purchased a new position in shares of Rithm Capital in the 3rd quarter valued at approximately $31,000. Mather Group LLC. purchased a new position in shares of Rithm Capital in the 3rd quarter valued at approximately $33,000. Optimum Investment Advisors increased its holdings in shares of Rithm Capital by 200.0% in the third quarter. Optimum Investment Advisors now owns 3,000 shares of the real estate investment trust’s stock valued at $34,000 after purchasing an additional 2,000 shares during the period. Finally, Valley Wealth Managers Inc. acquired a new position in shares of Rithm Capital in the third quarter valued at approximately $46,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Rithm Capital in a report on Monday, December 29th. Wedbush started coverage on shares of Rithm Capital in a research note on Monday, December 15th. They issued an “outperform” rating and a $14.00 price objective on the stock. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. UBS Group set a $15.00 target price on shares of Rithm Capital in a research note on Friday, February 6th. Finally, Wall Street Zen upgraded shares of Rithm Capital from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Rithm Capital has a consensus rating of “Moderate Buy” and a consensus price target of $14.50.

Rithm Capital Trading Down 2.7%

Shares of Rithm Capital stock opened at $9.60 on Friday. The company has a 50-day moving average of $10.82 and a two-hundred day moving average of $11.19. Rithm Capital Corp. has a 12-month low of $9.13 and a 12-month high of $12.74. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.20. The stock has a market cap of $5.34 billion, a PE ratio of 9.23 and a beta of 1.21.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 EPS for the quarter, topping the consensus estimate of $0.55 by $0.19. The business had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.24 billion. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%. On average, research analysts anticipate that Rithm Capital Corp. will post 1.93 EPS for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were given a $0.25 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.4%. Rithm Capital’s dividend payout ratio (DPR) is currently 96.15%.

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.