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

Key Points

• Rithm Capital has a consensus analyst rating of “Moderate Buy”, with seven buy ratings and one hold rating among eight covering brokerages. The average 12-month price target is $13.63.
• Several analysts recently trimmed their price targets on the stock, though most maintained bullish ratings such as outperform, buy, or overweight. Targets cited ranged from $12.50 to $16.00.
• The company recently reported Q1 earnings of $0.51 per share, slightly below estimates, while revenue came in above expectations at $1.38 billion. Rithm also paid a quarterly dividend of $0.25 per share, implying a 10.2% yield.

Rithm Capital Corp. (NYSE:RITM - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eight brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $13.6250.

A number of equities analysts have recently issued reports on RITM shares. Wedbush reduced their target price on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a research report on Friday, May 1st. UBS Group cut their price objective on shares of Rithm Capital from $15.00 to $14.50 and set a "buy" rating on the stock in a report on Friday, April 10th. Piper Sandler cut their target price on shares of Rithm Capital from $15.00 to $14.00 and set an "overweight" rating on the stock in a report on Thursday, April 2nd. Royal Bank Of Canada cut their target price on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Finally, BTIG Research reissued a "buy" rating and set a $16.00 price objective on shares of Rithm Capital in a research report on Friday, April 10th.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. CoreCap Advisors LLC grew its position in Rithm Capital by 99.2% in the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust's stock valued at $25,000 after purchasing an additional 1,143 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Rithm Capital in the 4th quarter valued at about $26,000. Bessemer Group Inc. lifted its stake in shares of Rithm Capital by 658.9% during the 3rd quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust's stock worth $30,000 after buying an additional 2,306 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Rithm Capital during the 3rd quarter worth about $31,000. Finally, Garton & Associates Financial Advisors LLC acquired a new stake in shares of Rithm Capital during the 4th quarter worth about $31,000. Institutional investors own 44.92% of the company's stock.

Rithm Capital Price Performance

Shares of Rithm Capital stock opened at $9.85 on Friday. The company has a current ratio of 1.28, a quick ratio of 0.58 and a debt-to-equity ratio of 4.02. The stock has a market capitalization of $5.50 billion, a price-to-earnings ratio of 9.03 and a beta of 1.17. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74. The firm's 50-day moving average price is $9.72 and its two-hundred day moving average price is $10.61.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.02). The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. On average, equities analysts predict that Rithm Capital will post 2.28 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Monday, April 6th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, April 6th. This represents a $1.00 annualized dividend and a dividend yield of 10.2%. Rithm Capital's dividend payout ratio is currently 91.74%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.