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

Key Points

• Rithm Capital Corp. has received a consensus rating of "Buy" from nine research firms, with an average 12-month target price of $14.00.
• The company reported earnings of $0.54 per share for the last quarter, surpassing the consensus estimate, and had a revenue of $1.22 billion.
• Rithm Capital announced a quarterly dividend of $0.25, translating to an annualized yield of 8.2%, with a payout ratio of 76.92%.

Shares of Rithm Capital Corp. (NYSE:RITM - Get Free Report) have earned an average rating of "Buy" from the nine brokerages that are presently covering the company, Marketbeat reports. Eight equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokers that have covered the stock in the last year is $14.00.

A number of brokerages have weighed in on RITM. Piper Sandler raised Rithm Capital from a "neutral" rating to an "overweight" rating and boosted their price target for the stock from $12.50 to $14.00 in a research report on Monday, April 28th. UBS Group reiterated a "buy" rating and issued a $14.00 price target (up from $13.00) on shares of Rithm Capital in a research note on Tuesday, July 15th. Jones Trading boosted their price target on Rithm Capital from $12.50 to $13.50 and gave the company a "buy" rating in a research note on Tuesday, July 29th. Keefe, Bruyette & Woods boosted their price target on Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a research note on Tuesday, July 29th. Finally, BTIG Research reiterated a "buy" rating and issued a $16.00 price target on shares of Rithm Capital in a research note on Friday, April 25th.

Rithm Capital Stock Performance

NYSE RITM traded up $0.07 during trading on Thursday, reaching $12.26. 1,966,045 shares of the company's stock were exchanged, compared to its average volume of 4,576,475. The business has a 50 day moving average price of $11.67 and a 200-day moving average price of $11.42. The stock has a market capitalization of $6.50 billion, a P/E ratio of 9.43 and a beta of 1.25. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.40 and a quick ratio of 0.35. Rithm Capital has a fifty-two week low of $9.13 and a fifty-two week high of $12.59.

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

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 8.2%. The ex-dividend date was Monday, June 30th. Rithm Capital's payout ratio is currently 76.92%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RITM. Kingstone Capital Partners Texas LLC acquired a new position in shares of Rithm Capital during the second quarter worth $96,027,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Rithm Capital in the second quarter valued at $24,938,000. Balyasny Asset Management L.P. increased its holdings in Rithm Capital by 48.6% in the fourth quarter. Balyasny Asset Management L.P. now owns 6,535,525 shares of the real estate investment trust's stock valued at $70,780,000 after purchasing an additional 2,136,342 shares during the period. Mackenzie Financial Corp increased its holdings in Rithm Capital by 288.6% in the first quarter. Mackenzie Financial Corp now owns 2,725,392 shares of the real estate investment trust's stock valued at $31,206,000 after purchasing an additional 2,024,090 shares during the period. Finally, First Trust Advisors LP increased its holdings in Rithm Capital by 78.3% in the fourth quarter. First Trust Advisors LP now owns 3,304,999 shares of the real estate investment trust's stock valued at $35,793,000 after purchasing an additional 1,451,829 shares during the period. 44.92% of the stock is currently owned by institutional investors and hedge funds.

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.