Rithm Capital Corp. (NYSE:RITM) Given Consensus Recommendation of "Buy" by Analysts

Key Points

• Rithm Capital Corp. (NYSE:RITM) has received an average recommendation of "Buy" from nine rating firms, with eight analysts suggesting a buy and one a strong buy.
• The company reported earnings of $0.54 per share for the last quarter, beating analysts' expectations, and has a projected dividend yield of 8.6%.
• Institutional investors significantly increased their holdings, with State Street Corp. boosting its stake by 11.5%, bringing its total to over 10 million shares.

Shares of Rithm Capital Corp. (NYSE:RITM - Get Free Report) have been assigned an average recommendation of "Buy" from the nine ratings firms that are currently covering the firm, MarketBeat.com reports. Eight equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $14.25.

RITM has been the topic of a number of research reports. Royal Bank Of Canada lifted their price objective on Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Jones Trading lifted their price objective on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. BTIG Research reiterated a "buy" rating and issued a $16.00 target price on shares of Rithm Capital in a report on Wednesday, September 17th. Keefe, Bruyette & Woods lifted their target price on Rithm Capital from $13.50 to $14.00 and gave the stock an "outperform" rating in a report on Tuesday, July 29th. Finally, Wedbush reiterated an "outperform" rating and issued a $14.00 target price on shares of Rithm Capital in a report on Wednesday, August 6th.

Hedge Funds Weigh In On Rithm Capital

Institutional investors and hedge funds have recently modified their holdings of the stock. State Street Corp boosted its holdings in Rithm Capital by 11.5% during the 2nd quarter. State Street Corp now owns 10,178,853 shares of the real estate investment trust's stock valued at $117,426,000 after acquiring an additional 1,052,130 shares during the period. Kingstone Capital Partners Texas LLC purchased a new position in Rithm Capital during the 2nd quarter valued at $96,027,000. Geode Capital Management LLC boosted its holdings in Rithm Capital by 1.1% during the 2nd quarter. Geode Capital Management LLC now owns 8,991,146 shares of the real estate investment trust's stock valued at $101,528,000 after acquiring an additional 98,307 shares during the period. Norges Bank purchased a new position in Rithm Capital during the 2nd quarter valued at $72,762,000. Finally, Wellington Management Group LLP boosted its holdings in Rithm Capital by 36.3% during the 1st quarter. Wellington Management Group LLP now owns 4,907,737 shares of the real estate investment trust's stock valued at $56,194,000 after acquiring an additional 1,307,276 shares during the period. Hedge funds and other institutional investors own 44.92% of the company's stock.

Rithm Capital Stock Performance

NYSE:RITM opened at $11.59 on Friday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.40. Rithm Capital has a 1 year low of $9.13 and a 1 year high of $12.74. The stock's 50 day simple moving average is $12.25 and its two-hundred day simple moving average is $11.55. The company has a market cap of $6.14 billion, a price-to-earnings ratio of 8.91 and a beta of 1.30.

Rithm Capital (NYSE:RITM - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. Rithm Capital had a return on equity of 18.89% and a net margin of 16.72%.The business had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.18 billion. As a group, equities analysts anticipate that Rithm Capital will post 1.93 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Wednesday, October 1st will be issued a $0.25 dividend. The ex-dividend date is Wednesday, October 1st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.6%. Rithm Capital's payout ratio is 76.92%.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments.

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