Rithm Capital (NYSE:RITM) Given New $13.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised Rithm Capital’s price target from $12.50 to $13.00 and maintained an “outperform” rating, implying approximately 38.7% upside from the reported $9.38 share price.
• Analyst sentiment is broadly positive: ten analysts rate the stock Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and an average price target of $12.80.
• Rithm Capital exceeded quarterly expectations, reporting $0.55 in earnings per share versus the $0.50 consensus and revenue of $1.76 billion versus $1.47 billion expected.

Rithm Capital (NYSE:RITM - Get Free Report) had its price target upped by stock analysts at Keefe, Bruyette & Woods from $12.50 to $13.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods's price objective would suggest a potential upside of 38.67% from the stock's current price.

Other research analysts also recently issued research reports about the stock. Wedbush reiterated an "outperform" rating and issued a $10.00 price objective on shares of Rithm Capital in a research report on Thursday, October 22nd. Weiss Ratings cut Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 2nd. Piper Sandler dropped their target price on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. BTIG Research cut their price target on Rithm Capital from $13.00 to $12.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Finally, Wall Street Zen raised Rithm Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Ten investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $12.80.

Rithm Capital Stock Performance

NYSE:RITM traded up $0.15 during mid-day trading on Tuesday, hitting $9.38. The company's stock had a trading volume of 3,479,248 shares, compared to its average volume of 7,702,272. Rithm Capital has a 1 year low of $8.31 and a 1 year high of $12.15. The company has a debt-to-equity ratio of 2.12, a current ratio of 0.83 and a quick ratio of 0.58. The stock has a market cap of $5.24 billion, a price-to-earnings ratio of 14.87, a PEG ratio of 0.59 and a beta of 1.16. The business's fifty day moving average is $9.38 and its two-hundred day moving average is $9.76.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its earnings results on Friday, October 23rd. The real estate investment trust reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.05. The firm had revenue of $1.76 billion during the quarter, compared to analyst estimates of $1.47 billion. Rithm Capital had a net margin of 8.71% and a return on equity of 20.03%. Analysts anticipate that Rithm Capital will post 2.28 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Peggy Hebard sold 14,520 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total value of $147,813.60. Following the completion of the sale, the director owned 82,259 shares of the company's stock, valued at approximately $837,396.62. The trade was a 15.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Rithm Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP increased its stake in shares of Rithm Capital by 14.4% during the second quarter. Wellington Management Group LLP now owns 11,616,077 shares of the real estate investment trust's stock worth $109,075,000 after purchasing an additional 1,466,315 shares in the last quarter. Bank of New York Mellon Corp raised its position in shares of Rithm Capital by 71.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,390,135 shares of the real estate investment trust's stock worth $32,138,000 after purchasing an additional 1,416,415 shares during the last quarter. Royal Bank of Canada lifted its stake in Rithm Capital by 12.5% in the 1st quarter. Royal Bank of Canada now owns 2,974,882 shares of the real estate investment trust's stock valued at $28,202,000 after buying an additional 331,513 shares in the last quarter. Principal Financial Group Inc. lifted its stake in Rithm Capital by 17,546.2% in the 1st quarter. Principal Financial Group Inc. now owns 2,693,696 shares of the real estate investment trust's stock valued at $25,536,000 after buying an additional 2,678,431 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Rithm Capital in the 2nd quarter valued at about $22,001,000. 44.92% of the stock is owned by hedge funds and other institutional investors.

Rithm Capital Company Profile

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.

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