Hsbc Holdings PLC Cuts Stake in Rithm Capital Corp. $RITM

Hsbc Holdings PLC reduced its holdings in shares of Rithm Capital Corp. (NYSE:RITM) by 92.0% during the first quarter, Holdings Channel reports. The fund owned 15,135 shares of the real estate investment trust’s stock after selling 174,537 shares during the period. Hsbc Holdings PLC’s holdings in Rithm Capital were worth $143,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. Los Angeles Capital Management LLC purchased a new stake in shares of Rithm Capital in the 4th quarter valued at $26,000. Garton & Associates Financial Advisors LLC purchased a new position in Rithm Capital in the 4th quarter worth $31,000. Torren Management LLC bought a new stake in Rithm Capital in the fourth quarter worth $35,000. Advisory Services Network LLC bought a new stake in Rithm Capital in the third quarter worth $43,000. Finally, City Holding Co. boosted its position in Rithm Capital by 35.1% during the fourth quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust’s stock valued at $42,000 after buying an additional 1,000 shares during the period. 44.92% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RITM has been the subject of a number of recent research reports. Piper Sandler lowered their target price on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Compass Point started coverage on Rithm Capital in a research note on Monday, June 8th. They issued a “buy” rating and a $14.00 price target on the stock. Citigroup restated an “outperform” rating on shares of Rithm Capital in a research report on Wednesday, May 20th. Wall Street Zen upgraded shares of Rithm Capital from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Citizens Jmp boosted their price target on Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a report on Wednesday, May 20th. Ten research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Rithm Capital currently has an average rating of “Moderate Buy” and an average price target of $13.20.

Insiders Place Their Bets

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the transaction, the director owned 44,248 shares in the company, valued at approximately $409,294. This represents a 64.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.57% of the company’s stock.

Rithm Capital Stock Up 1.9%

Shares of NYSE RITM opened at $10.25 on Wednesday. The company has a current ratio of 0.90, a quick ratio of 1.28 and a debt-to-equity ratio of 2.19. Rithm Capital Corp. has a 12 month low of $8.43 and a 12 month high of $12.74. The firm has a market capitalization of $5.72 billion, a PE ratio of 17.08 and a beta of 1.14. The firm has a fifty day simple moving average of $9.30 and a two-hundred day simple moving average of $9.81.

Rithm Capital (NYSE:RITM) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. Equities analysts expect that Rithm Capital Corp. will post 2.22 earnings per share for the current year.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 9.8%. The ex-dividend date of this dividend was Thursday, July 2nd. Rithm Capital’s payout ratio is presently 166.67%.

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.