Rithm Capital (NYSE:RITM) Shares Gap Up on Earnings Beat

Key Points

• Rithm Capital beat earnings expectations, reporting quarterly EPS of $0.55 versus the $0.50 consensus estimate. Shares opened at $9.13, up from the prior close of $8.68.
• The company declared a quarterly dividend of $0.25 per share, equating to a $1.00 annualized payout and approximately 10.9% yield, though its payout ratio is high at 166.67%.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $12.80, although some firms have lowered targets and GAAP earnings of $0.38 per share lagged the non-GAAP distribution measure.

Rithm Capital Corp. (NYSE:RITM - Get Free Report)'s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $8.68, but opened at $9.13. Rithm Capital shares last traded at $9.1960, with a volume of 2,322,331 shares changing hands.

The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.05. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%.

Rithm Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 10.9%. The ex-dividend date is Thursday, October 1st. Rithm Capital's dividend payout ratio is presently 166.67%.

Rithm Capital News Summary

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Rithm reported third-quarter earnings available for distribution of $0.55 per diluted share, above consensus estimates of approximately $0.50–$0.51 and up from $0.54 a year earlier. Total revenue rose to $1.76 billion from $1.28 billion in the second quarter, representing a 17.71% revenue surprise. Rithm Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company reported $315.3 million of earnings available for distribution and declared a quarterly common dividend of $0.25 per share, supporting the stock’s income appeal. Rithm Capital Reports Q3 2026 GAAP Net Income
• Positive Sentiment: Management pointed to continued expansion of its fee-based asset-management platform, with assets under management of approximately $61 billion. Newrez generated $329.7 million of pre-tax operating income, while Genesis Capital originated $1.5 billion of residential transition loans. Rithm Capital Announces Third Quarter 2026 Results
• Positive Sentiment: Wedbush reaffirmed its Outperform rating and set a $10 price target, implying roughly 8% upside based on the cited reference price. Wedbush Reaffirms Rithm Rating
• Neutral Sentiment: GAAP net income attributable to common stockholders was $217.1 million, or $0.38 per diluted share. The larger $0.55 figure is a non-GAAP distribution measure, so investors may focus on the quality and sustainability of earnings in addition to the headline beat. Rithm Q3 Earnings Snapshot

Analyst Ratings Changes

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

Insiders Place Their Bets

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

Hedge Funds Weigh In On Rithm Capital

Several institutional investors have recently made changes to their positions in RITM. Wellington Management Group LLP lifted its stake in Rithm Capital by 14.4% in 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 acquiring an additional 1,466,315 shares during the period. Bank of New York Mellon Corp increased its position in 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 valued at $32,138,000 after purchasing an additional 1,416,415 shares during the period. Royal Bank of Canada increased its position in Rithm Capital by 12.5% during 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 purchasing an additional 331,513 shares during the period. Principal Financial Group Inc. increased its position in Rithm Capital by 17,546.2% during 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 purchasing an additional 2,678,431 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Rithm Capital in the 2nd quarter valued at about $22,001,000. Hedge funds and other institutional investors own 44.92% of the company's stock.

Rithm Capital Stock Performance

The firm's fifty day moving average price is $9.42 and its 200 day moving average price is $9.49. The firm has a market cap of $5.12 billion, a P/E ratio of 15.27, a price-to-earnings-growth ratio of 0.54 and a beta of 1.16. The company has a debt-to-equity ratio of 2.19, a quick ratio of 0.58 and a current ratio of 0.58.

About Rithm Capital

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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