Piper Sandler Has Lowered Expectations for Rithm Capital (NYSE:RITM) Stock Price

Key Points

• Piper Sandler cut its price target on Rithm Capital to $14 (from $15) while maintaining an "overweight" rating, implying roughly a 48.54% upside from the prior close.
• Analyst consensus is a Moderate Buy—seven Buys and one Hold—with a mean target of about $14.36.
• Rithm recently beat quarterly estimates (Q: $0.74 EPS vs. $0.55 est.; revenue $1.29B vs. $1.24B), trades around $9.43 with a P/E of 9.05, and has seen notable institutional buying (e.g., Norges Bank, Qube Research).

Rithm Capital (NYSE:RITM - Get Free Report) had its price objective lowered by investment analysts at Piper Sandler from $15.00 to $14.00 in a report issued on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the real estate investment trust's stock. Piper Sandler's price objective indicates a potential upside of 48.54% from the company's previous close.

Several other brokerages also recently issued reports on RITM. Wedbush started coverage on shares of Rithm Capital in a research report on Monday, December 15th. They set an "outperform" rating and a $14.00 price objective for the company. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Rithm Capital in a research report on Monday, December 29th. UBS Group set a $15.00 target price on Rithm Capital in a research note on Friday, February 6th. Wall Street Zen raised Rithm Capital from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Finally, Keefe, Bruyette & Woods restated an "outperform" rating on shares of Rithm Capital in a research note on Thursday, December 18th. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Rithm Capital has an average rating of "Moderate Buy" and a consensus target price of $14.36.

Rithm Capital Stock Performance

Shares of RITM traded down $0.05 during trading hours on Thursday, hitting $9.43. The company had a trading volume of 689,900 shares, compared to its average volume of 11,923,438. The firm has a market cap of $5.24 billion, a price-to-earnings ratio of 9.05 and a beta of 1.19. The business has a fifty day moving average of $10.22 and a 200-day moving average of $10.86. Rithm Capital has a 12 month low of $8.43 and a 12 month high of $12.74. 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 (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 EPS for the quarter, topping the consensus estimate of $0.55 by $0.19. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.24 billion. Equities analysts anticipate that Rithm Capital will post 1.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Norges Bank bought a new stake in shares of Rithm Capital in the fourth quarter valued at approximately $77,067,000. Qube Research & Technologies Ltd increased its stake in Rithm Capital by 80.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock worth $89,878,000 after acquiring an additional 3,524,330 shares during the period. UBS Group AG raised its holdings in Rithm Capital by 127.9% in the 3rd quarter. UBS Group AG now owns 3,718,822 shares of the real estate investment trust's stock valued at $42,357,000 after acquiring an additional 2,087,282 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in shares of Rithm Capital by 52.1% during the 3rd quarter. Balyasny Asset Management L.P. now owns 5,939,093 shares of the real estate investment trust's stock valued at $67,646,000 after acquiring an additional 2,033,973 shares during the period. Finally, Meteora Capital LLC bought a new stake in shares of Rithm Capital during the 3rd quarter valued at $19,441,000. 44.92% of the stock is owned by institutional investors.

Rithm Capital Company Profile

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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