NEW YORK - Rithm Capital Corp. (NYSE: RITM) has initiated a public offering of 30 million shares of common stock, the company disclosed Monday. The terms include a 30-day option for underwriters to purchase up to an additional 4.5 million shares. Rithm Capital, a global asset manager, aims to allocate the net proceeds from this offering towards general corporate purposes.
The sale of shares will be managed by a team of joint book-running managers, consisting of Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, UBS Investment Bank, BTIG, and Wells Fargo Securities, LLC. The offering is contingent on market conditions and will be conducted in accordance with a shelf registration statement previously filed with the Securities and Exchange Commission (SEC).
Prospective investors are advised to review the prospectus supplement, the prospectus, and the company's SEC filings for detailed information about Rithm and the offering. These documents can be obtained from the SEC's EDGAR database or directly from the underwriters.
This announcement serves as neither an offer to sell nor a solicitation of an offer to buy the common stock in any jurisdiction where such actions would contravene securities laws. Rithm Capital, established in 2013, operates with a focus on real estate, credit, and financial services. The company's portfolio includes direct investments and wholly-owned operating businesses such as Sculptor Capital Management (NYSE:SCU), Inc., as well as mortgage origination and servicing platforms Newrez LLC and Genesis Capital LLC.
Investors and the public should be aware that this press release contains forward-looking statements subject to various risks and uncertainties. Rithm Capital does not commit to updating any forward-looking statements, which are only valid as of their respective dates. The full realization of these forward-looking statements is not guaranteed due to the inherent uncertainty surrounding the assumptions, risks, and changes over time that may affect the company's future results.
The information presented in this article is based on a press release statement from Rithm Capital Corp.
In other recent news, Rithm Capital Corp has been making significant strides in its sector. The company reported a robust second-quarter performance with a pretax income of $248 million, highlighting its operational achievements across various business lines. Analysts from B.Riley maintained their Buy rating for Rithm Capital, citing the company's strong earnings narrative and potential for continued growth.
Rithm Capital's core mortgage company, Newrez, has been recognized for delivering strong results, contributing to the company's robust earnings narrative. The acquisition of Specialized Loan Servicing and the management agreement with Great Ajax (NYSE:AJX) have been noted as key factors in Rithm Capital's dynamic growth trajectory. The company's significant mortgage servicing rights (MSR) portfolio, valued at $741.6 billion, and its liquidity of $1.5 billion have been identified as key assets enabling the execution of its business strategies.
These recent developments underscore Rithm Capital's strategic focus on disciplined management and expansion. With a robust servicing portfolio and a clear strategy for navigating current market conditions, the company remains committed to its growth trajectory. Analysts encourage investors to consider the potential value creation from the company's ongoing corporate restructuring.
InvestingPro Insights
Rithm Capital Corp. (NYSE: RITM), while announcing its public offering, has shown a robust financial standing that could reassure potential investors. According to InvestingPro data, Rithm Capital has a market capitalization of approximately $5.78 billion, reflecting the scale of its operations in the asset management sector. The company's Price-to-Earnings (P/E) ratio stands at 9.86, which is closely aligned with the adjusted P/E for the last twelve months as of Q2 2024, suggesting a consistent valuation over time.
Investors may find Rithm Capital's dividend policy particularly attractive. The company not only pays a significant dividend, but it has also maintained dividend payments for 12 consecutive years, with a current dividend yield of 8.49%. This commitment to shareholder returns is underscored by the company's liquidity position, where its liquid assets exceed short-term obligations. Such financial health could be a reassuring factor for investors considering participation in the public offering.
Two InvestingPro Tips for Rithm Capital highlight the importance of understanding stock volatility and earnings expectations. Analysts have noted that Rithm's stock price movements are quite volatile, which is an essential consideration for investors with different risk appetites. Additionally, three analysts have revised their earnings downwards for the upcoming period, which could influence the stock's performance in the short term. For investors seeking deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/RITM, offering further insights into Rithm Capital's financial outlook.
Overall, Rithm Capital's financial data and InvestingPro Tips present a mixed picture that underscores the importance of thorough research when considering investment opportunities. The company's strong dividend record and market valuation suggest a solid foundation, while the noted volatility and earnings revisions call for careful risk assessment.
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