Rithm Capital Corp. (NYSE:RITM) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Moderate Buy consensus from eight brokerages (seven buy, one hold) with an average 12‑month price target of $14.50.
• Rithm posted an earnings beat — $0.74 EPS vs. $0.55 estimate and $1.29B revenue vs. $1.24B — and trades at a low P/E of 8.68 around $9.03 (12‑month range $8.97–$12.74).
• Institutional buying has increased, led by Goldman Sachs (stake up 75.6% to 1,539,483 shares, ~$17.6M), with institutions owning 44.92% of the stock; the firm carries notable leverage (debt/equity 2.20).

Rithm Capital Corp. (NYSE:RITM - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eight brokerages that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $14.50.

Several analysts have commented on RITM shares. Weiss Ratings reissued a "hold (c+)" rating on shares of Rithm Capital in a research report on Monday, December 29th. UBS Group set a $15.00 price objective on shares of Rithm Capital in a research note on Friday, February 6th. Wall Street Zen raised shares of Rithm Capital from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Rithm Capital in a report on Thursday, December 18th. Finally, Wedbush began coverage on Rithm Capital in a research report on Monday, December 15th. They set an "outperform" rating and a $14.00 price target on the stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RITM. AQR Capital Management LLC grew its stake in shares of Rithm Capital by 20.4% during 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 during the last quarter. NewEdge Advisors LLC raised its position in shares of Rithm Capital by 5.3% in the 1st quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust's stock valued at $359,000 after purchasing an additional 1,585 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of Rithm Capital by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust's stock valued at $17,627,000 after purchasing an additional 662,585 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after purchasing an additional 881 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in Rithm Capital by 15.5% in the 2nd quarter. Envestnet Asset Management Inc. now owns 125,012 shares of the real estate investment trust's stock worth $1,411,000 after purchasing an additional 16,779 shares in the last quarter. 44.92% of the stock is owned by institutional investors and hedge funds.

Rithm Capital Trading Down 0.4%

RITM opened at $9.03 on Friday. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.20. The firm has a market cap of $5.02 billion, a price-to-earnings ratio of 8.68 and a beta of 1.21. Rithm Capital has a 12 month low of $8.97 and a 12 month high of $12.74. The stock has a fifty day moving average price of $10.63 and a 200-day moving average price of $11.08.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, beating analysts' consensus estimates of $0.55 by $0.19. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%.The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.24 billion. As a group, equities research analysts anticipate that Rithm Capital will post 1.93 earnings per share for the current fiscal year.

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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