Alden Global Capital LLC has significantly increased its investment in Rithm Capital Corp. (NYSE: RITM), raising its stake by 47.2% during the second quarter of the year. According to the firm’s latest 13F filing with the Securities and Exchange Commission, Alden now holds 288,376 shares of the real estate investment trust, following the acquisition of an additional 92,500 shares during this period. This stake represents approximately 2.0% of Alden’s overall investment portfolio, making Rithm Capital the firm’s 13th largest position.
As of the most recent filing, Alden Global Capital’s holdings in Rithm Capital were valued at $3,256,000. Other institutional investors have also adjusted their positions in Rithm Capital recently. For instance, Geneos Wealth Management Inc. raised its holdings by 14.3% in the first quarter, bringing its total to 7,031 shares worth approximately $81,000 after acquiring an additional 881 shares. Similarly, GAMMA Investing LLC increased its holdings by 19.1% during the second quarter, now owning 5,528 shares valued at $62,000.
Townsquare Capital LLC and Foster Victor Wealth Advisors LLC also expanded their stakes, with Townsquare increasing its holdings by 3.7% in the first quarter, now owning 30,439 shares valued at $349,000, and Foster Victor growing its stake by 2.3% to 60,618 shares, worth $710,000. Maridea Wealth Management LLC also added 1,374 shares during the second quarter, raising its total to 65,367 shares valued at $738,000.
As of now, institutional investors collectively hold 44.92% of Rithm Capital’s stock.
Rithm Capital’s Current Market Activity
On the trading front, Rithm Capital stock opened at $11.13 on Friday and has seen a slight decline of 0.1%. The company’s stock has a 50-day moving average price of $11.04 and a 200-day moving average price of $11.57. Rithm Capital has demonstrated a market cap of $6.17 billion, with a price-to-earnings ratio of 7.67 and a beta of 1.22. Over the past year, the stock has fluctuated between a low of $9.13 and a high of $12.74.
In addition to these developments, Rithm Capital announced a quarterly dividend of $0.25, which was paid on October 31, 2023, to shareholders on record as of October 1, 2023. This translates into an annualized dividend yield of 9.0% and a payout ratio of 68.97%.
Analyst Ratings and Insider Transactions
Several research firms have recently provided their evaluations of Rithm Capital. Jones Trading reiterated a “buy” rating alongside a price target of $13.50 on October 30, 2023. Weiss Ratings maintained a “hold (c+)” rating, while UBS Group raised its target price from $14.00 to $16.00, also issuing a “buy” rating. BTIG Research reaffirmed a “buy” rating with a target price of $16.00 as well. Currently, one analyst has recommended a strong buy, eight have issued buy ratings, and one has assigned a hold rating, resulting in an average rating of “buy” and a consensus target price of $14.25, according to data from MarketBeat.com.
In terms of insider trading, David Zeiden, an insider at Rithm Capital, sold 19,285 shares of the company’s stock on November 14, 2023, at an average price of $11.11, totaling approximately $214,256. Additionally, CEO Michael Nierenberg sold 301,548 shares on November 5, 2023, at an average price of $11.00, resulting in a total transaction value of $3,317,028. Corporate insiders hold a modest 0.44% of the company’s stock.
About Rithm Capital
Rithm Capital Corp. operates as an asset manager specializing in real estate, credit, and financial services. The firm is organized into segments including Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management. Its investment portfolio predominantly consists of mortgage servicing rights, real estate securities, consumer and business purpose loans, among other assets.
As Rithm Capital continues to attract interest from large institutional investors and analysts alike, its market performance and strategic decisions will be closely monitored in the coming quarters.
