Rithm Capital Corp. (NYSE:RITM) Short Interest Down 14.8% in April

Rithm Capital Corp. (NYSE:RITM) was the recipient of a significant drop in short interest in the month of April. As of April 15th, there was short interest totaling 29,993,096 shares, a drop of 14.8% from the March 31st total of 35,218,399 shares. Based on an average trading volume of 6,934,491 shares, the short-interest ratio is currently 4.3 days. Approximately 5.4% of the shares of the company are short sold.

Institutional Investors Weigh In On Rithm Capital

Large investors have recently added to or reduced their stakes in the company. AIA Group Ltd increased its holdings in shares of Rithm Capital by 86.9% in the third quarter. AIA Group Ltd now owns 326,436 shares of the real estate investment trust’s stock worth $3,718,000 after buying an additional 151,733 shares during the period. Waterfall Asset Management LLC increased its holdings in shares of Rithm Capital by 169.7% in the third quarter. Waterfall Asset Management LLC now owns 360,573 shares of the real estate investment trust’s stock worth $4,115,000 after buying an additional 226,859 shares during the period. Public Sector Pension Investment Board purchased a new position in shares of Rithm Capital in the third quarter worth about $1,519,000. Envestnet Asset Management Inc. increased its holdings in shares of Rithm Capital by 246.8% in the third quarter. Envestnet Asset Management Inc. now owns 433,567 shares of the real estate investment trust’s stock worth $4,938,000 after buying an additional 308,555 shares during the period. Finally, Y Intercept Hong Kong Ltd increased its holdings in shares of Rithm Capital by 459.2% in the third quarter. Y Intercept Hong Kong Ltd now owns 239,007 shares of the real estate investment trust’s stock worth $2,722,000 after buying an additional 196,265 shares during the period. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Rithm Capital Price Performance

Shares of RITM stock traded up $0.02 on Friday, reaching $9.80. The company’s stock had a trading volume of 5,649,204 shares, compared to its average volume of 5,912,843. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74. The company has a market capitalization of $5.47 billion, a P/E ratio of 8.99 and a beta of 1.17. The stock’s 50 day simple moving average is $9.75 and its 200-day simple moving average is $10.64.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.27 billion. As a group, equities analysts predict that Rithm Capital will post 2.28 earnings per share for the current fiscal year.

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Monday, April 6th were given a dividend of $0.25 per share. The ex-dividend date was Monday, April 6th. This represents a $1.00 dividend on an annualized basis and a yield of 10.2%. Rithm Capital’s dividend payout ratio (DPR) is presently 91.74%.

Analyst Ratings Changes

A number of research firms have recently commented on RITM. Piper Sandler cut their price target on Rithm Capital from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Thursday, April 2nd. Keefe, Bruyette & Woods cut their price target on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating for the company in a report on Friday. Capital One Financial set a $12.50 price objective on Rithm Capital in a research report on Thursday, April 9th. Wall Street Zen downgraded Rithm Capital from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, BTIG Research reiterated a “buy” rating and issued a $16.00 price objective on shares of Rithm Capital in a research report on Friday, April 10th. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.63.

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.