Rithm Capital's (RITM) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush has reaffirmed an "outperform" rating for Rithm Capital (NYSE:RITM) with a target price of $14.00, suggesting a potential upside of 14.44% from the last closing price.
• Rithm Capital reported earnings of $0.54 EPS for the latest quarter, exceeding estimates, and had a revenue of $1.22 billion, above expectations of $1.18 billion.
• Eight analysts currently rate Rithm Capital as a buy, with a consensus target price of $14.00 reflecting positive sentiment in the market.

Wedbush reaffirmed their outperform rating on shares of Rithm Capital (NYSE:RITM - Free Report) in a report issued on Wednesday,RTT News reports. They currently have a $14.00 target price on the real estate investment trust's stock.

RITM has been the topic of a number of other research reports. Piper Sandler raised Rithm Capital from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $12.50 to $14.00 in a research note on Monday, April 28th. BTIG Research reissued a "buy" rating and set a $16.00 price objective on shares of Rithm Capital in a research note on Friday, April 25th. UBS Group reissued a "buy" rating and set a $14.00 price objective (up previously from $13.00) on shares of Rithm Capital in a research note on Tuesday, July 15th. Royal Bank Of Canada boosted their price objective on Rithm Capital from $13.00 to $14.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Finally, Keefe, Bruyette & Woods boosted their price objective on Rithm Capital from $13.50 to $14.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 29th. Eight research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $14.00.

Rithm Capital Price Performance

Shares of RITM traded up $0.07 during trading hours on Wednesday, hitting $12.26. 1,966,045 shares of the stock were exchanged, compared to its average volume of 4,537,524. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.40 and a current ratio of 0.40. Rithm Capital has a 12-month low of $9.13 and a 12-month high of $12.59. The company has a market cap of $6.50 billion, a price-to-earnings ratio of 5.58 and a beta of 1.25. The stock's 50-day moving average price is $11.67 and its two-hundred day moving average price is $11.42.

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

Rithm Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 8.2%. The ex-dividend date of this dividend was Monday, June 30th. Rithm Capital's dividend payout ratio is 76.92%.

Institutional Investors Weigh In On Rithm Capital

Several institutional investors and hedge funds have recently modified their holdings of the company. Barclays PLC increased its holdings in Rithm Capital by 1.2% during the 4th quarter. Barclays PLC now owns 219,670 shares of the real estate investment trust's stock worth $2,379,000 after purchasing an additional 2,701 shares during the period. KBC Group NV increased its holdings in Rithm Capital by 24.0% during the 1st quarter. KBC Group NV now owns 22,846 shares of the real estate investment trust's stock worth $262,000 after purchasing an additional 4,423 shares during the period. Amalgamated Bank increased its holdings in Rithm Capital by 5.9% during the 1st quarter. Amalgamated Bank now owns 27,064 shares of the real estate investment trust's stock worth $310,000 after purchasing an additional 1,502 shares during the period. Edgestream Partners L.P. increased its holdings in Rithm Capital by 341.5% during the 1st quarter. Edgestream Partners L.P. now owns 688,882 shares of the real estate investment trust's stock worth $7,888,000 after purchasing an additional 532,866 shares during the period. Finally, Bleakley Financial Group LLC increased its holdings in Rithm Capital by 197.1% during the 1st quarter. Bleakley Financial Group LLC now owns 36,428 shares of the real estate investment trust's stock worth $417,000 after purchasing an additional 24,166 shares during the period. Hedge funds and other 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.