Keefe, Bruyette & Woods Cuts Rithm Capital (NYSE:RITM) Price Target to $13.00

Key Points

• Keefe, Bruyette & Woods cut its price target for Rithm Capital from $14.00 to $13.00 but kept an "outperform" rating, implying roughly a 32.7% upside from the prior close.
• Analyst consensus remains positive—seven Buys and one Hold—giving a MarketBeat consensus of "Moderate Buy" with an average target of $13.75 (recent targets range about $12.50–$16.00).
• Rithm traded near $9.80 (1-year range $8.43–$12.74); the company recently missed quarterly EPS by $0.02 ($0.51 vs. $0.53) while beating revenue estimates, and institutional investors own roughly 44.9% of the stock.

Rithm Capital (NYSE:RITM - Get Free Report) had its price target decreased by investment analysts at Keefe, Bruyette & Woods from $14.00 to $13.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' price target would suggest a potential upside of 32.72% from the stock's previous close.

Several other equities research analysts have also recently weighed in on RITM. Wedbush reaffirmed an "outperform" rating and issued a $12.50 price target on shares of Rithm Capital in a research note on Friday. Capital One Financial set a $12.50 price target on Rithm Capital in a research note on Thursday, April 9th. BTIG Research reaffirmed a "buy" rating and issued a $16.00 price target on shares of Rithm Capital in a research note on Friday, April 10th. JonesTrading reaffirmed a "buy" rating and issued a $13.50 price target on shares of Rithm Capital in a research note on Tuesday. Finally, Piper Sandler reduced their price target on Rithm Capital from $15.00 to $14.00 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, Rithm Capital presently has a consensus rating of "Moderate Buy" and an average target price of $13.75.

Rithm Capital Trading Up 0.2%

Shares of RITM traded up $0.02 during mid-day trading on Friday, hitting $9.80. 1,339,488 shares of the company's stock traded hands, compared to its average volume of 10,587,820. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. Rithm Capital has a 1 year low of $8.43 and a 1 year high of $12.74. The firm has a market capitalization of $5.47 billion, a P/E ratio of 8.99 and a beta of 1.19. The business's 50-day moving average price is $9.75 and its 200-day moving average price is $10.64.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). The business had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. As a group, sell-side analysts forecast that Rithm Capital will post 2.31 EPS for the current fiscal year.

Institutional Investors Weigh In On Rithm Capital

Several hedge funds have recently added to or reduced their stakes in RITM. AQR Capital Management LLC boosted its holdings in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust's stock worth $889,000 after acquiring an additional 13,166 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in Rithm Capital by 5.3% in the first quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust's stock worth $359,000 after acquiring an additional 1,585 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Rithm Capital by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust's stock worth $17,627,000 after acquiring an additional 662,585 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in Rithm Capital by 14.3% in the first quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after acquiring an additional 881 shares in the last quarter. Finally, M&T Bank Corp boosted its holdings in Rithm Capital by 13.9% in the second quarter. M&T Bank Corp now owns 26,173 shares of the real estate investment trust's stock worth $296,000 after acquiring an additional 3,200 shares in the last quarter. 44.92% of the stock is owned by institutional investors.

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.

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