Alden Global Capital LLC has significantly increased its investment in Rithm Capital Corp. (NYSE: RITM) by 47.2% during the second quarter of 2023. According to its latest 13F filing with the Securities and Exchange Commission (SEC), Alden now holds 288,376 shares of the real estate investment trust (REIT) after acquiring an additional 92,500 shares during this period. This investment is valued at approximately $3.26 million, making Rithm Capital the 13th largest position in Alden’s portfolio, which comprises various institutional investments.
The increase in Alden’s stake reflects a broader trend among institutional investors looking to capitalize on the potential of Rithm Capital. Several other significant players have adjusted their positions in the company. For instance, Geneos Wealth Management Inc. raised its holdings in Rithm by 14.3% in the first quarter, bringing its total to 7,031 shares valued at $81,000 after purchasing an additional 881 shares. Similarly, GAMMA Investing LLC boosted its stake by 19.1% during the second quarter, now owning 5,528 shares worth $62,000.
Market Performance and Dividend Declaration
As of October 30, 2023, Rithm Capital’s stock opened at $11.13. The company has experienced a minor decline of 0.1% recently. Its 50-day moving average stands at $11.04, while the 200-day moving average is $11.57. Rithm Capital has a market capitalization of $6.17 billion and a price-to-earnings ratio of 7.67. The stock has fluctuated between a 12-month low of $9.13 and a high of $12.74.
In addition to these developments, Rithm Capital recently declared a quarterly dividend of $0.25 per share, which was paid on October 31, 2023. Shareholders of record as of October 1 received this dividend, representing an annualized dividend of $1.00 and a yield of 9.0%. The company’s payout ratio is currently 68.97%.
Analyst Ratings and Insider Activity
Wall Street analysts have remained optimistic about Rithm Capital. On October 30, 2023, Jones Trading reaffirmed a “buy” rating with a target price of $13.50. Weiss Ratings maintained a “hold (C+)” rating, while UBS Group raised its target from $14.00 to $16.00, also assigning a “buy” rating. BTIG Research echoed this sentiment, maintaining a “buy” rating with a target price of $16.00. Overall, the consensus among analysts is positive, with one rating it as a Strong Buy, eight as Buy, and one as Hold, leading to an average rating of “Buy” and a consensus target price of $14.25.
In insider trading news, David Zeiden, an insider at Rithm Capital, sold 19,285 shares on November 14, 2023, for a total of $214,256.35. Additionally, CEO Michael Nierenberg sold 301,548 shares on November 5, 2023, for a total transaction value of approximately $3.32 million. Corporate insiders currently own 0.44% of the company’s stock.
Rithm Capital Corp. operates as an asset manager with a focus on real estate, credit, and financial services. Its operations are divided into several segments, including Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management. The firm’s investment portfolio includes a range of assets such as mortgage servicing rights, real estate securities, and various loans, reflecting a diversified approach to investment management.
For those interested in tracking institutional holdings and insider trading activity for Rithm Capital, resources such as HoldingsChannel.com provide updated 13F filings and relevant news.
