Teachers Retirement System of The State of Kentucky Takes $1.31 Million Position in Rithm Capital Corp. $RITM

Teachers Retirement System of The State of Kentucky purchased a new position in shares of Rithm Capital Corp. (NYSE:RITM) in the 1st quarter, according to the company in its most recent filing with the SEC. The fund purchased 138,000 shares of the real estate investment trust’s stock, valued at approximately $1,308,000.

Several other large investors have also bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Rithm Capital by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 50,282,841 shares of the real estate investment trust’s stock worth $548,083,000 after acquiring an additional 1,191,923 shares during the period. State Street Corp lifted its stake in shares of Rithm Capital by 5.3% in 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 period. Geode Capital Management LLC lifted its stake in shares of Rithm Capital by 4.8% in the 4th quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust’s stock valued at $104,904,000 after purchasing an additional 443,144 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Rithm Capital by 80.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock worth $89,878,000 after purchasing an additional 3,524,330 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Rithm Capital in the 4th quarter worth $77,067,000. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RITM. Compass Point began coverage on Rithm Capital in a report on Monday, June 8th. They issued a “buy” rating and a $14.00 price objective for the company. UBS Group reduced their target price on Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a report on Friday, April 10th. Keefe, Bruyette & Woods lowered their price target on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. BTIG Research lowered their price target on Rithm Capital from $16.00 to $13.00 and set a “buy” rating for the company in a research note on Tuesday, June 16th. Finally, Piper Sandler cut their price target on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.20.

Rithm Capital Trading Up 0.3%

NYSE RITM opened at $9.24 on Thursday. The firm has a market cap of $5.16 billion, a P/E ratio of 8.48 and a beta of 1.14. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.28 and a quick ratio of 1.28. The stock’s 50-day moving average is $9.26 and its 200-day moving average is $9.97. Rithm Capital Corp. has a one year low of $8.43 and a one year high of $12.74.

Rithm Capital (NYSE:RITM) last issued its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%. The business had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.27 billion. Sell-side analysts anticipate that Rithm Capital Corp. will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The business 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 dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.8%. Rithm Capital’s dividend payout ratio is currently 91.74%.

Insider Activity

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

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.