Rithm Capital (NYSE:RITM) Rating Increased to Buy at Wall Street Zen

Key Points

• Rithm Capital was upgraded by Wall Street Zen from a "hold" to a buy; seven analysts now rate the stock Buy and one rates it Hold, producing a MarketBeat consensus of “Moderate Buy” with a consensus target price of $14.50.
• The company beat quarterly estimates, reporting EPS of $0.74 versus $0.55 expected and revenue of $1.29B versus $1.24B, with a 19.7% return on equity and a 15.6% net margin.
• Shares trade around $9.66 (50‑day SMA $10.92, 200‑day SMA $11.26) with a market cap of $5.37B and a PE of 9.3, implying roughly 50% upside to the $14.50 consensus target and roughly 44.9% institutional ownership.

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

A number of other analysts have also recently issued reports on RITM. Weiss Ratings reissued a "hold (c+)" rating on shares of Rithm Capital in a research note on Monday, December 29th. Wedbush initiated coverage on shares of Rithm Capital in a research report on Monday, December 15th. They set an "outperform" rating and a $14.00 price objective for the company. Piper Sandler reaffirmed an "overweight" rating and issued a $15.00 price objective (down from $15.50) on shares of Rithm Capital in a research report on Wednesday, February 4th. UBS Group set a $15.00 target price on shares of Rithm Capital in a research note on Friday, February 6th. Finally, Keefe, Bruyette & Woods restated an "outperform" rating on shares of Rithm Capital in a report on Thursday, December 18th. Seven research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Rithm Capital presently has an average rating of "Moderate Buy" and a consensus target price of $14.50.

Rithm Capital Stock Performance

Shares of Rithm Capital stock opened at $9.66 on Friday. The stock's fifty day simple moving average is $10.92 and its 200 day simple moving average is $11.26. 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 company has a market capitalization of $5.37 billion, a PE ratio of 9.29 and a beta of 1.21. Rithm Capital has a 12 month low of $9.13 and a 12 month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.19. The company had revenue of $1.29 billion during 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%. On average, research analysts predict that Rithm Capital will post 1.93 EPS for the current year.

Institutional Trading of Rithm Capital

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in shares of Rithm Capital by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 50,282,841 shares of the real estate investment trust's stock worth $548,083,000 after purchasing an additional 1,191,923 shares during the last quarter. State Street Corp grew its holdings in Rithm Capital by 5.3% during the fourth quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust's stock worth $117,701,000 after purchasing an additional 530,607 shares during the period. Geode Capital Management LLC increased its position in Rithm Capital by 4.8% during the fourth quarter. Geode Capital Management LLC now owns 9,621,935 shares of the real estate investment trust's stock worth $104,904,000 after buying an additional 443,144 shares during the last quarter. Qube Research & Technologies Ltd raised its stake in Rithm Capital by 80.7% in the third quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust's stock valued at $89,878,000 after buying an additional 3,524,330 shares during the period. Finally, Norges Bank acquired a new stake in shares of Rithm Capital in the fourth quarter valued at approximately $77,067,000. 44.92% of the stock is owned by institutional investors.

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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