Rithm Capital (NYSE:RITM) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Rithm Capital (NYSE:RITM) from a Buy to a Hold in a report issued on Saturday.
• Most analysts remain constructive—seven rate the stock Buy and one rates it Hold—giving a consensus “Moderate Buy” and a mean target of $13.63, even as several firms trimmed price targets (e.g., UBS $15→$14.50, Wedbush $14→$12.50, KBW $14→$13).
• Recent results show mixed fundamentals: shares traded at $9.80, market cap $5.47B and P/E 8.99; quarterly EPS was $0.51 (missed by $0.02) while revenue beat at $1.38B, and the stock sits nearer its 12‑month low ($8.43) than high ($12.74).

Rithm Capital (NYSE:RITM - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other brokerages also recently weighed in on RITM. JonesTrading reaffirmed a "buy" rating and set a $13.50 price target on shares of Rithm Capital in a report on Tuesday. UBS Group lowered their price target 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. Capital One Financial set a $12.50 price target on shares of Rithm Capital in a report on Thursday, April 9th. Wedbush lowered their price target on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a report on Friday. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a report on Friday. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $13.63.

Rithm Capital Stock Performance

Shares of NYSE RITM opened at $9.80 on Friday. The firm has a 50 day moving average of $9.75 and a 200 day moving average of $10.64. 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 capitalization of $5.47 billion, a price-to-earnings ratio of 8.99 and a beta of 1.17. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02). Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. The business had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.27 billion. On average, research analysts anticipate that Rithm Capital will post 2.28 earnings per share for the current year.

Institutional Investors Weigh In On Rithm Capital

Hedge funds have recently bought and sold shares of the business. AIA Group Ltd raised its stake in Rithm Capital by 86.9% during the third quarter. AIA Group Ltd now owns 326,436 shares of the real estate investment trust's stock valued at $3,718,000 after purchasing an additional 151,733 shares in the last quarter. Waterfall Asset Management LLC increased its position in Rithm Capital by 169.7% during the third quarter. Waterfall Asset Management LLC now owns 360,573 shares of the real estate investment trust's stock valued at $4,115,000 after acquiring an additional 226,859 shares during the last quarter. Public Sector Pension Investment Board bought a new position in Rithm Capital during the third quarter valued at $1,519,000. Envestnet Asset Management Inc. increased its position in Rithm Capital by 246.8% during the third quarter. Envestnet Asset Management Inc. now owns 433,567 shares of the real estate investment trust's stock valued at $4,938,000 after acquiring an additional 308,555 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd increased its position in Rithm Capital by 459.2% during the third quarter. Y Intercept Hong Kong Ltd now owns 239,007 shares of the real estate investment trust's stock valued at $2,722,000 after acquiring an additional 196,265 shares during the last quarter. Hedge funds and other institutional investors own 44.92% of the company's stock.

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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