Short Interest in Rithm Capital Corp. (NYSE:RITM) Expands By 30.2%

Rithm Capital Corp. (NYSE:RITM) was the recipient of a large growth in short interest in the month of February. As of February 13th, there was short interest totaling 12,351,438 shares, a growth of 30.2% from the January 29th total of 9,488,012 shares. Based on an average daily volume of 11,005,198 shares, the days-to-cover ratio is currently 1.1 days. Approximately 2.2% of the company’s stock are short sold. Approximately 2.2% of the company’s stock are short sold. Based on an average daily volume of 11,005,198 shares, the days-to-cover ratio is currently 1.1 days.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on RITM shares. Piper Sandler restated an “overweight” rating and issued a $15.00 price target (down from $15.50) on shares of Rithm Capital in a research note on Wednesday, February 4th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Rithm Capital in a report on Thursday, December 18th. Weiss Ratings restated a “hold (c+)” rating on shares of Rithm Capital in a research note on Monday, December 29th. Wedbush initiated coverage on shares of Rithm Capital in a report on Monday, December 15th. They issued an “outperform” rating and a $14.00 price target on the stock. Finally, UBS Group set a $15.00 price target on Rithm Capital in a report on Friday, February 6th. Seven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, Rithm Capital currently has an average rating of “Moderate Buy” and an average target price of $14.50.

Rithm Capital Trading Up 0.4%

Shares of Rithm Capital stock traded up $0.04 on Monday, hitting $10.09. The stock had a trading volume of 11,576,942 shares, compared to its average volume of 9,381,053. The firm has a market capitalization of $5.61 billion, a P/E ratio of 9.71 and a beta of 1.21. The stock has a 50 day moving average of $11.02 and a 200 day moving average of $11.31. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58. Rithm Capital has a twelve month low of $9.13 and a twelve month high of $12.74.

Rithm Capital (NYSE:RITM) last posted its quarterly earnings data on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.19. The company had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.24 billion. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. Sell-side analysts expect that Rithm Capital will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were issued a $0.25 dividend. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 9.9%. Rithm Capital’s dividend payout ratio is currently 96.15%.

Hedge Funds Weigh In On Rithm Capital

Several institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC boosted its position in shares of Rithm Capital by 20.4% during the 1st quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock valued at $889,000 after acquiring an additional 13,166 shares during the last quarter. NewEdge Advisors LLC raised its stake in shares of Rithm Capital by 5.3% during the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock valued at $359,000 after acquiring an additional 1,585 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Rithm Capital by 75.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock valued at $17,627,000 after buying an additional 662,585 shares during the period. Geneos Wealth Management Inc. increased its position in Rithm Capital by 14.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after purchasing an additional 881 shares during the period. Finally, Wealthfront Advisers LLC raised its holdings in Rithm Capital by 7.9% in the second quarter. Wealthfront Advisers LLC now owns 20,001 shares of the real estate investment trust’s stock worth $226,000 after purchasing an additional 1,466 shares in the last quarter. Hedge funds and other institutional investors own 44.92% of the company’s stock.

Rithm Capital Company 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.