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 2023. According to the firm’s latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Alden now holds 288,376 shares of the real estate investment trust, having acquired an additional 92,500 shares during the period. This investment now represents approximately 2.0% of Alden’s overall portfolio, making Rithm Capital its 13th largest position.
As of the most recent filing, Alden Global Capital’s holdings in Rithm Capital are valued at $3.26 million. Other institutional investors have also made moves with Rithm Capital shares. Geneos Wealth Management Inc. increased its position by 14.3% in the first quarter, now owning 7,031 shares valued at $81,000 after purchasing an additional 881 shares. Similarly, GAMMA Investing LLC boosted its holdings by 19.1% during the second quarter, bringing its total to 5,528 shares, worth $62,000.
Other notable increases include Townsquare Capital LLC, which raised its stake by 3.7%, now holding 30,439 shares valued at $349,000, and Foster Victor Wealth Advisors LLC, which grew its investment by 2.3% to 60,618 shares worth $710,000. Lastly, Maridea Wealth Management LLC increased its holdings by 2.1%, now owning 65,367 shares valued at $738,000. Collectively, institutional investors own 44.92% of Rithm Capital’s stock.
Current Market Performance and Dividends
As of October 27, 2023, Rithm Capital’s stock opened at $11.13, reflecting a slight decrease of 0.1%. The company has a market capitalization of $6.17 billion and a price-to-earnings ratio of 7.67. Its stock has fluctuated between a 12-month low of $9.13 and a high of $12.74. The firm also reported a quick ratio and current ratio of 0.45 each, along with a debt-to-equity ratio of 1.52.
On October 31, 2023, Rithm Capital announced a quarterly dividend of $0.25 per share, which was paid to shareholders of record on October 1, 2023. This annualized dividend of $1.00 provides a yield of 9.0%, with a payout ratio of 68.97%.
Analyst Ratings and Insider Transactions
Several research firms have weighed in on Rithm Capital, with Jones Trading maintaining a “buy” rating and setting a price target of $13.50 as of October 30, 2023. Weiss Ratings has reaffirmed a “hold (C+)” rating, while UBS Group increased its target price from $14.00 to $16.00, also giving the stock a “buy” rating. BTIG Research echoed this sentiment, reaffirming a “buy” rating with a target price of $16.00. Currently, one analyst has given the stock a “Strong Buy” rating, eight have issued a “Buy” rating, and one maintains a “Hold” rating, leading to an average rating of “Buy” with a consensus target price of $14.25 according to MarketBeat.com.
Insider activity has also been notable. On November 14, 2023, insider David Zeiden sold 19,285 shares at an average price of $11.11, totaling approximately $214,256.35. Additionally, CEO Michael Nierenberg sold 301,548 shares on November 5, 2023, for a total of $3,317,028.00. Corporate insiders now hold 0.44% of the company’s stock.
Rithm Capital Corp. primarily operates as an asset manager focused on real estate, credit, and financial services. Its operations are segmented into Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management. The investment portfolio mainly consists of mortgage servicing rights, financing receivables, real estate securities, and consumer loans, among other assets.
For those interested in tracking further developments with Rithm Capital, including insider trades and holdings by other hedge funds, resources such as HoldingsChannel.com are available for updates on the latest filings.
