SummitTX Capital L.P. Has $1.14 Million Holdings in Rithm Capital Corp. $RITM

SummitTX Capital L.P. grew its holdings in shares of Rithm Capital Corp. (NYSE:RITM) by 88.8% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 120,601 shares of the real estate investment trust’s stock after buying 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 SEC.

Several other large investors also recently modified their holdings of RITM. CoreCap Advisors LLC lifted its position in shares of Rithm Capital by 99.2% during the 4th quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock valued at $25,000 after acquiring an additional 1,143 shares during the period. Los Angeles Capital Management LLC bought a new position in Rithm Capital during the fourth quarter worth $26,000. FNY Investment Advisers LLC acquired a new stake in Rithm Capital in the fourth quarter worth $31,000. Garton & Associates Financial Advisors LLC acquired a new stake in Rithm Capital in the fourth quarter worth $31,000. Finally, Torren Management LLC bought a new stake in Rithm Capital in the fourth quarter valued at $35,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

Insider Activity

In other news, Director David Saltzman sold 80,922 shares of the firm’s stock in a transaction 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 completion of the sale, the director directly owned 44,248 shares of the company’s stock, valued at $409,294. This trade represents a 64.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.57% of the stock is currently owned by corporate insiders.

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.

Rithm Capital Trading Up 1.9%

Shares of Rithm Capital stock opened at $9.96 on Thursday. The company has a market capitalization of $5.56 billion, a P/E ratio of 16.61 and a beta of 1.14. The stock has a fifty day simple moving average of $9.24 and a 200 day simple moving average of $9.85. Rithm Capital Corp. has a 12-month low of $8.43 and a 12-month 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.

Rithm Capital (NYSE:RITM) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, topping 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%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.43 billion. On average, sell-side analysts anticipate that Rithm Capital Corp. will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 10.0%. The ex-dividend date is Thursday, July 2nd. Rithm Capital’s dividend payout ratio is 91.74%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on RITM shares. BTIG Research cut their price objective 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. Capital One Financial set a $12.50 target price on Rithm Capital in a research report on Thursday, April 9th. Piper Sandler cut their price target on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a report on Thursday, July 2nd. Citigroup restated an “outperform” rating on shares of Rithm Capital in a report on Wednesday, May 20th. Finally, Wall Street Zen cut Rithm Capital from a “hold” rating to a “sell” rating in a report on Monday, July 6th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Rithm Capital currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.20.

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.