Rithm Capital (NYSE:RITM) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS Group has raised its price target for Rithm Capital's stock from $14.00 to $16.00, predicting a potential upside of 29.38% from its current price.
• Rithm Capital's stock boasts a consensus rating of “Buy” from analysts, with one analyst rating it as “Strong Buy” and an average target price of $14.25.
• The company reported earnings of $0.54 EPS for the last quarter, surpassing analysts' expectations, and has a market capitalization of $6.56 billion.

Rithm Capital (NYSE:RITM - Get Free Report) had its price target raised by investment analysts at UBS Group from $14.00 to $16.00 in a research report issued to clients and investors on Wednesday, MarketBeat Ratings reports. The brokerage currently has a "buy" rating on the real estate investment trust's stock. UBS Group's price target suggests a potential upside of 27.64% from the company's previous close.

A number of other research analysts have also recently commented on RITM. Jones Trading raised their price target on Rithm Capital from $12.50 to $13.50 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Keefe, Bruyette & Woods raised their target price on shares of Rithm Capital from $13.50 to $14.00 and gave the company an "outperform" rating in a report on Tuesday, July 29th. Wedbush reissued an "outperform" rating and issued a $14.00 price objective on shares of Rithm Capital in a research note on Wednesday, August 6th. Finally, Royal Bank Of Canada lifted their price target on Rithm Capital from $13.00 to $14.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating and eight have assigned a Buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $14.25.

Rithm Capital Stock Performance

Shares of NYSE RITM traded down $0.09 during mid-day trading on Wednesday, reaching $12.54. 1,620,849 shares of the company were exchanged, compared to its average volume of 4,557,265. The company's 50-day simple moving average is $12.11 and its 200-day simple moving average is $11.52. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 1.63. The stock has a market capitalization of $6.65 billion, a P/E ratio of 9.65 and a beta of 1.30. Rithm Capital has a twelve month low of $9.13 and a twelve month high of $12.74.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its earnings results on Monday, July 28th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.18 billion. Rithm Capital had a net margin of 16.72% and a return on equity of 18.89%. As a group, research analysts predict that Rithm Capital will post 1.93 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RITM. Orion Porfolio Solutions LLC bought a new position in Rithm Capital in the 2nd quarter valued at about $268,000. Thrivent Financial for Lutherans lifted its position in shares of Rithm Capital by 108.7% during the second quarter. Thrivent Financial for Lutherans now owns 188,633 shares of the real estate investment trust's stock valued at $2,129,000 after purchasing an additional 98,269 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of Rithm Capital during the second quarter valued at about $184,000. State of Wyoming bought a new position in shares of Rithm Capital during the second quarter valued at about $451,000. Finally, Nomura Holdings Inc. lifted its position in shares of Rithm Capital by 1.1% during the second quarter. Nomura Holdings Inc. now owns 1,862,741 shares of the real estate investment trust's stock valued at $21,030,000 after purchasing an additional 20,616 shares in the last quarter. Institutional investors own 44.92% of the company's stock.

Rithm Capital Company Profile

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.