Rithm Capital's (RITM) "Outperform" Rating Reiterated at Wedbush

Key Points

• Wedbush reaffirmed its “Outperform” rating on Rithm Capital and set a $10 price target, implying 17.16% upside from the prior close.
• Analyst sentiment remains broadly positive: Rithm has a consensus “Moderate Buy” rating from MarketBeat, with an average price target of $12.80.
• Rithm reported quarterly EPS of $0.60, exceeding the $0.50 consensus estimate, while institutional investors own approximately 44.92% of the company.

Rithm Capital (NYSE:RITM - Get Free Report)'s stock had its "outperform" rating reissued by research analysts at Wedbush in a research report issued on Thursday, Benzinga reports. They presently have a $10.00 price target on the real estate investment trust's stock. Wedbush's price objective indicates a potential upside of 17.16% from the stock's previous close.

Several other research firms also recently commented on RITM. UBS Group decreased their target price on Rithm Capital from $14.50 to $14.00 and set a "buy" rating on the stock in a research report on Friday, August 21st. Weiss Ratings cut Rithm Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 2nd. BTIG Research dropped their price target on Rithm Capital from $13.00 to $12.00 and set a "buy" rating for the company in a report on Monday, October 12th. Wall Street Zen upgraded Rithm Capital from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Piper Sandler decreased their price objective on Rithm Capital from $14.00 to $12.50 and set an "overweight" rating on the stock in a report on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $12.80.

Rithm Capital Price Performance

Shares of RITM opened at $8.54 on Thursday. The company's 50-day moving average is $9.45 and its 200-day moving average is $9.50. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.58 and a quick ratio of 0.58. The firm has a market capitalization of $4.77 billion, a PE ratio of 14.23, a PEG ratio of 0.55 and a beta of 1.16. Rithm Capital has a fifty-two week low of $8.31 and a fifty-two week high of $12.15.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, topping the consensus estimate of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. Equities analysts forecast that Rithm Capital will post 2.25 EPS for the current year.

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the transaction, the director owned 82,259 shares in the company, valued at $837,396.62. This represents a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RITM. Bank of New York Mellon Corp acquired a new stake in shares of Rithm Capital in the second quarter valued at approximately $29,635,000. Principal Financial Group Inc. boosted its stake in shares of Rithm Capital by 17,546.2% in the first 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 during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Rithm Capital during the second quarter worth approximately $22,001,000. Wellington Management Group LLP grew its position in 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 buying an additional 1,466,315 shares in the last quarter. Finally, BlueCrest Capital Management Ltd grew its holdings in shares of Rithm Capital by 37.8% during the 2nd quarter. BlueCrest Capital Management Ltd now owns 2,046,427 shares of the real estate investment trust's stock worth $19,216,000 after purchasing an additional 561,819 shares in the last quarter. 44.92% of the stock is owned by 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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