Hsbc Holdings PLC Lowers Stock Holdings in Rithm Capital Corp. $RITM

by · The Markets Daily

Hsbc Holdings PLC reduced its holdings in Rithm Capital Corp. (NYSE:RITM – Free Report) by 22.0% in the 4th quarter, HoldingsChannel.com reports. The firm owned 189,672 shares of the real estate investment trust’s stock after selling 53,532 shares during the quarter. Hsbc Holdings PLC’s holdings in Rithm Capital were worth $2,075,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. AIA Group Ltd increased its position in Rithm Capital by 86.9% during the 3rd quarter. AIA Group Ltd now owns 326,436 shares of the real estate investment trust’s stock worth $3,718,000 after purchasing an additional 151,733 shares in the last quarter. Waterfall Asset Management LLC lifted its position in Rithm Capital by 169.7% during the third quarter. Waterfall Asset Management LLC now owns 360,573 shares of the real estate investment trust’s stock valued at $4,115,000 after buying an additional 226,859 shares in the last quarter. Magnetar Financial LLC lifted its position in Rithm Capital by 188.8% during the third quarter. Magnetar Financial LLC now owns 295,499 shares of the real estate investment trust’s stock valued at $3,366,000 after buying an additional 193,167 shares in the last quarter. Algert Global LLC grew its stake in Rithm Capital by 92.4% during the third quarter. Algert Global LLC now owns 1,535,938 shares of the real estate investment trust’s stock worth $17,494,000 after buying an additional 737,708 shares during the period. Finally, JPMorgan Chase & Co. grew its stake in Rithm Capital by 8.6% during the third quarter. JPMorgan Chase & Co. now owns 1,536,981 shares of the real estate investment trust’s stock worth $17,506,000 after buying an additional 121,137 shares during the period. 44.92% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently commented on RITM. Wedbush cut their target price on shares of Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a research note on Friday, May 1st. UBS Group decreased their price target on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research report on Friday, April 10th. Weiss Ratings downgraded Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Royal Bank Of Canada cut their price objective on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. Finally, BTIG Research reduced their price objective on Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a research note on Tuesday, June 16th. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Rithm Capital presently has a consensus rating of “Moderate Buy” and an average target price of $13.35.

Read Our Latest Stock Analysis on RITM

Insiders Place Their Bets

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total value of $748,528.50. Following the completion of the transaction, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. This represents a 64.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.57% of the stock is currently owned by insiders.

Rithm Capital Trading Up 0.4%

RITM opened at $9.42 on Tuesday. The firm has a market capitalization of $5.26 billion, a P/E ratio of 8.64 and a beta of 1.14. The firm’s 50 day moving average is $9.45 and its 200-day moving average is $10.14. Rithm Capital Corp. has a 52-week low of $8.43 and a 52-week high of $12.74. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02.

Rithm Capital (NYSE:RITM – Get Free Report) last posted its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. Analysts expect that Rithm Capital Corp. will post 2.27 EPS 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. Shareholders of record on Thursday, July 2nd will be issued a $0.25 dividend. The ex-dividend date is Thursday, July 2nd. This represents a $1.00 dividend on an annualized basis and a yield of 10.6%. Rithm Capital’s payout ratio is currently 91.74%.

About Rithm Capital

(Free Report)

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.

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