SummitTX Capital L.P. Raises Position in Rithm Capital Corp. $RITM

SummitTX Capital L.P. increased its stake in Rithm Capital Corp. (NYSE:RITM) by 88.8% during the first quarter, HoldingsChannel reports. The firm owned 120,601 shares of the real estate investment trust’s stock after acquiring an additional 56,715 shares during the period. SummitTX Capital L.P.’s holdings in Rithm Capital were worth $1,143,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also bought and sold shares of RITM. Norges Bank bought a new position in Rithm Capital during the fourth quarter valued at $77,067,000. Qube Research & Technologies Ltd raised its stake in shares of Rithm Capital by 80.7% in the third 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 buying an additional 3,524,330 shares during the period. Principal Financial Group Inc. lifted its position in shares of Rithm Capital by 17,546.2% during the 1st quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust’s stock valued at $25,536,000 after buying an additional 2,678,431 shares during the last quarter. UBS Group AG lifted its position in shares of Rithm Capital by 127.9% during the 3rd quarter. UBS Group AG now owns 3,718,822 shares of the real estate investment trust’s stock valued at $42,357,000 after buying an additional 2,087,282 shares during the last quarter. Finally, Balyasny Asset Management L.P. grew its stake in shares of Rithm Capital by 52.1% during the 3rd quarter. Balyasny Asset Management L.P. now owns 5,939,093 shares of the real estate investment trust’s stock worth $67,646,000 after acquiring an additional 2,033,973 shares during the period. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Rithm Capital Stock Performance

Rithm Capital stock opened at $9.96 on Thursday. Rithm Capital Corp. has a 1-year low of $8.43 and a 1-year high of $12.74. The company has a current ratio of 0.90, a quick ratio of 1.28 and a debt-to-equity ratio of 2.19. The firm has a market capitalization of $5.56 billion, a PE ratio of 16.61 and a beta of 1.14. The firm’s 50 day simple moving average is $9.24 and its 200 day simple moving average is $9.85.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.43 billion. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. As a group, analysts expect that Rithm Capital Corp. will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The company 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 is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.0%. Rithm Capital’s dividend payout ratio is 91.74%.

Insider Activity at Rithm Capital

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the stock in a transaction that occurred 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 transaction, 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 Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.57% of the company’s stock.

Key Stories Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Adjusted earnings beat expectations: Rithm reported second-quarter earnings available for distribution of $0.60 per share, versus the $0.50 analyst consensus and $0.54 a year earlier. The result was supported by stronger asset-management revenue and higher origination volumes. Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Year over Year
• Positive Sentiment: Asset-management momentum continued: Rithm Asset Management’s assets under management rose to approximately $61 billion from $59 billion in the first quarter. Management highlighted fee-based growth, while Genesis Capital’s origination volume increased 52% year over year to $1.9 billion. Rithm Capital Earnings Review
• Positive Sentiment: Mortgage securitization activity provides an additional catalyst: KBRA assigned preliminary ratings to 10 classes of notes in a $494.5 million non-prime residential mortgage-backed securities transaction sponsored by Rithm. The deal highlights continued activity across the company’s mortgage platform and may support capital recycling. KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM9
• Positive Sentiment: Income and dividend appeal remain prominent: The company reported a 19.48% return on equity, $12.33 in book value per common share, and a $0.25 quarterly dividend. Analysts cited Rithm’s potentially attractive valuation and dividend yield, while brokerages have set an average price target of $13.20. Brokerages Set Rithm Capital Target Price
• Neutral Sentiment: Analyst views are mixed: Coverage indicates that analysts remain divided on Rithm’s outlook, limiting the potential for a broad-based reassessment of the shares. Analysts Conflicted on Rithm Capital
• Negative Sentiment: Revenue and GAAP profitability were weaker: Quarterly revenue of $1.28 billion missed the $1.43 billion consensus, while GAAP net income attributable to common stockholders was only $20.2 million, or $0.04 per share. Weaker servicing revenue and higher expenses were reported as offsets to the adjusted earnings beat.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RITM. Capital One Financial set a $12.50 price objective on Rithm Capital in a research note on Thursday, April 9th. Wedbush reduced their target price on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating for the company in a research note on Friday, May 1st. BTIG Research lowered their price target on shares of Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a research report on Tuesday, June 16th. UBS Group dropped their price target on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research note on Friday, April 10th. Finally, JonesTrading reiterated a “buy” rating and issued a $13.50 price objective on shares of Rithm Capital in a research note on Tuesday, April 28th. Ten investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $13.20.

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.