Rithm Capital Corp. (NYSE:RITM) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Eight brokerages rate Rithm Capital an average "Moderate Buy" (7 buys, 1 hold) with a 1‑year average price target of $14.06 versus a recent share price near $10.07, implying potential upside.
• High dividend yield: The company declared a $0.25 quarterly dividend (annualized $1.00) at a ~9.9% yield with an ex‑dividend date of April 6, but the payout ratio is elevated at 96.15%.
• Solid quarter: Rithm beat Q4 estimates (EPS $0.74 vs $0.55; revenue $1.29B vs $1.24B) and shows strong profitability (ROE ~19.7%, net margin ~15.6%) while trading at a P/E of about 9.7.

Shares of Rithm Capital Corp. (NYSE:RITM - Get Free Report) have been assigned an average rating of "Moderate Buy" from the eight brokerages that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $14.0625.

A number of brokerages have recently issued reports on RITM. UBS Group dropped their price objective on Rithm Capital from $15.00 to $14.50 and set a "buy" rating on the stock in a research note on Friday. Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Rithm Capital in a research note on Thursday, December 18th. Capital One Financial set a $12.50 price target on Rithm Capital in a research note on Thursday. Wall Street Zen raised Rithm Capital from a "hold" rating to a "buy" rating in a research note on Saturday, March 7th. Finally, Wedbush initiated coverage on Rithm Capital in a research note on Monday, December 15th. They set an "outperform" rating and a $14.00 price target on the stock.

Rithm Capital Stock Up 1.3%

Shares of NYSE:RITM opened at $10.07 on Tuesday. The company has a market capitalization of $5.62 billion, a price-to-earnings ratio of 9.68 and a beta of 1.19. The company has a debt-to-equity ratio of 2.20, a current ratio of 0.58 and a quick ratio of 0.58. The business's 50-day moving average is $9.91 and its 200-day moving average is $10.73. Rithm Capital has a 1 year low of $8.43 and a 1 year high of $12.74.

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

Rithm Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Monday, April 6th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 9.9%. The ex-dividend date of this dividend is Monday, April 6th. Rithm Capital's dividend payout ratio is 96.15%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RITM. Norges Bank acquired a new position in Rithm Capital during the 4th quarter worth approximately $77,067,000. Qube Research & Technologies Ltd raised 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 buying an additional 3,524,330 shares during the period. UBS Group AG raised its stake in Rithm Capital by 127.9% during the 3rd quarter. UBS Group AG now owns 3,718,822 shares of the real estate investment trust's stock worth $42,357,000 after buying an additional 2,087,282 shares during the period. Balyasny Asset Management L.P. raised its stake in 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 worth $67,646,000 after buying an additional 2,033,973 shares during the period. Finally, Meteora Capital LLC purchased a new stake in shares of Rithm Capital in the third quarter worth approximately $19,441,000. 44.92% of the stock is owned by institutional investors and hedge funds.

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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