Royal Bank Of Canada Has Lowered Expectations for Rithm Capital (NYSE:RITM) Stock Price

Key Points

• Royal Bank of Canada cut its price target for Rithm Capital from $14.00 to $13.00 while keeping an "outperform" rating, implying roughly a 33% upside from the stock's last close.
• Analyst consensus is a "Moderate Buy" with seven Buy ratings and one Hold, and an average price target of $13.63 while individual broker targets range from $12.50 to $16.00.
• Rithm traded near $9.78 — well below analyst targets — after reporting an EPS miss ($0.51 vs. $0.53) but revenue that beat estimates, and shows a P/E of 8.97 and a debt-to-equity ratio of 2.20.

Rithm Capital (NYSE:RITM - Get Free Report) had its target price decreased by equities research analysts at Royal Bank Of Canada from $14.00 to $13.00 in a report issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the real estate investment trust's stock. Royal Bank Of Canada's price target suggests a potential upside of 32.99% from the company's previous close.

Several other brokerages also recently weighed in on RITM. BTIG Research reaffirmed a "buy" rating and set a $16.00 price target on shares of Rithm Capital in a report on Friday, April 10th. Keefe, Bruyette & Woods lowered 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. JonesTrading reissued a "buy" rating and issued a $13.50 target price on shares of Rithm Capital in a report on Tuesday. Wall Street Zen raised shares of Rithm Capital from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Finally, Wedbush lowered their target price on shares of Rithm Capital from $14.00 to $12.50 and set an "outperform" rating on the stock in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Rithm Capital has a consensus rating of "Moderate Buy" and an average price target of $13.63.

Rithm Capital Price Performance

NYSE:RITM traded down $0.01 during trading hours on Friday, hitting $9.78. 2,262,860 shares of the stock traded hands, compared to its average volume of 10,600,548. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.20. Rithm Capital has a 1 year low of $8.43 and a 1 year high of $12.74. The company has a market cap of $5.46 billion, a price-to-earnings ratio of 8.97 and a beta of 1.19. The stock has a 50 day moving average price of $9.75 and a 200 day moving average price of $10.64.

Rithm Capital (NYSE:RITM - Get Free Report) last issued its quarterly earnings results 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). Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. The firm had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.27 billion. Sell-side analysts forecast that Rithm Capital will post 2.31 EPS for the current fiscal year.

Institutional Investors Weigh In On Rithm Capital

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in Rithm Capital by 2.4% in the fourth 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 increased its position in Rithm Capital by 5.3% in 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 last quarter. Geode Capital Management LLC increased its position in Rithm Capital by 4.8% in 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 purchasing an additional 443,144 shares during the last quarter. Qube Research & Technologies Ltd increased its position 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 worth $89,878,000 after purchasing an additional 3,524,330 shares during the last quarter. Finally, Norges Bank bought a new stake in Rithm Capital in the fourth quarter worth $77,067,000. Institutional investors own 44.92% of the company's stock.

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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