Rithm Capital Corp. (NYSE:RITM) Receives Consensus Rating of “Moderate Buy” from Brokerages

Rithm Capital Corp. (NYSE:RITM) has earned a consensus recommendation of “Moderate Buy” from the eight research firms that are currently covering the stock, Marketbeat reports. One analyst has rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $14.50.

A number of research analysts have weighed in on RITM shares. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. UBS Group set a $15.00 target price on Rithm Capital in a research note on Friday, February 6th. Piper Sandler reiterated an “overweight” rating and set a $15.00 target price (down from $15.50) on shares of Rithm Capital in a report on Wednesday, February 4th. JonesTrading restated a “buy” rating and issued a $13.50 price target on shares of Rithm Capital in a report on Thursday, October 30th. Finally, Wedbush began coverage on shares of Rithm Capital in a research note on Monday, December 15th. They set an “outperform” rating and a $14.00 price objective on the stock.

Rithm Capital Stock Down 1.1%

Shares of NYSE RITM opened at $10.47 on Monday. The firm’s 50 day moving average price is $11.14 and its 200 day moving average price is $11.41. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58. The firm has a market cap of $5.82 billion, a P/E ratio of 10.06 and a beta of 1.20. Rithm Capital has a 1 year low of $9.13 and a 1 year high of $12.74.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.19. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.24 billion. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. As a group, sell-side analysts anticipate that Rithm Capital will post 1.93 earnings per share for the current year.

Rithm Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date of this dividend was Wednesday, December 31st. Rithm Capital’s payout ratio is presently 96.15%.

Institutional Investors Weigh In On Rithm Capital

Institutional investors have recently modified their holdings of the stock. Westbourne Investment Advisors Inc. purchased a new stake in Rithm Capital in the 2nd quarter worth about $593,000. JPMorgan Chase & Co. increased its holdings in shares of Rithm Capital by 16.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,415,844 shares of the real estate investment trust’s stock valued at $15,985,000 after purchasing an additional 201,720 shares during the period. Thrivent Financial for Lutherans lifted its position in shares of Rithm Capital by 108.7% in the second quarter. Thrivent Financial for Lutherans now owns 188,633 shares of the real estate investment trust’s stock worth $2,129,000 after purchasing an additional 98,269 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its holdings in shares of Rithm Capital by 459.2% during the third quarter. Y Intercept Hong Kong Ltd now owns 239,007 shares of the real estate investment trust’s stock worth $2,722,000 after purchasing an additional 196,265 shares during the period. Finally, Synergy Asset Management LLC purchased a new position in Rithm Capital during the third quarter valued at approximately $2,821,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

About Rithm Capital

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.