Analysts Set Rithm Capital Corp. (NYSE:RITM) Price Target at $13.20

Shares of Rithm Capital Corp. (NYSE:RITM) have earned an average rating of “Moderate Buy” from the eleven ratings firms that are covering the firm, Marketbeat reports. One analyst has rated the stock with a hold rating and ten have issued a buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $13.20.

RITM has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods lowered their price objective on shares of Rithm Capital from $14.00 to $13.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. JonesTrading reiterated a “buy” rating and issued a $13.50 target price on shares of Rithm Capital in a research report on Tuesday, April 28th. UBS Group decreased their target price on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating for the company in a research note on Friday, April 10th. Weiss Ratings upgraded shares of Rithm Capital from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday. Finally, Compass Point initiated coverage on shares of Rithm Capital in a research note on Monday, June 8th. They issued a “buy” rating and a $14.00 price target on the stock.

Insider Buying and Selling at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of Rithm Capital stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the completion of the sale, the director directly owned 44,248 shares in the company, valued at $409,294. The trade was a 64.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.57% of the stock is owned by company insiders.

Institutional Trading of Rithm Capital

A number of institutional investors have recently added to or reduced their stakes in RITM. Curi Capital LLC increased its stake in shares of Rithm Capital by 0.7% during the 2nd quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust’s stock worth $1,358,000 after purchasing an additional 829 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after purchasing an additional 881 shares during the last quarter. City Holding Co. lifted its stake in shares of Rithm Capital by 35.1% in the 4th quarter. City Holding Co. now owns 3,850 shares of the real estate investment trust’s stock valued at $42,000 after purchasing an additional 1,000 shares during the last quarter. Westbourne Investment Advisors Inc. boosted its holdings in Rithm Capital by 1.8% in the fourth quarter. Westbourne Investment Advisors Inc. now owns 55,500 shares of the real estate investment trust’s stock worth $605,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Fort Sheridan Advisors LLC boosted its holdings in Rithm Capital by 0.3% in the fourth quarter. Fort Sheridan Advisors LLC now owns 367,164 shares of the real estate investment trust’s stock worth $4,002,000 after purchasing an additional 1,000 shares in the last quarter. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Adjusted earnings beat expectations: Rithm reported second-quarter earnings available for distribution of $0.60 per share, versus the $0.50 analyst consensus and $0.54 a year earlier. The result was supported by stronger asset-management revenue and higher origination volumes. Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Year over Year
• Positive Sentiment: Asset-management momentum continued: Rithm Asset Management’s assets under management rose to approximately $61 billion from $59 billion in the first quarter. Management highlighted fee-based growth, while Genesis Capital’s origination volume increased 52% year over year to $1.9 billion. Rithm Capital Earnings Review
• Positive Sentiment: Mortgage securitization activity provides an additional catalyst: KBRA assigned preliminary ratings to 10 classes of notes in a $494.5 million non-prime residential mortgage-backed securities transaction sponsored by Rithm. The deal highlights continued activity across the company’s mortgage platform and may support capital recycling. KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM9
• Positive Sentiment: Income and dividend appeal remain prominent: The company reported a 19.48% return on equity, $12.33 in book value per common share, and a $0.25 quarterly dividend. Analysts cited Rithm’s potentially attractive valuation and dividend yield, while brokerages have set an average price target of $13.20. Brokerages Set Rithm Capital Target Price
• Neutral Sentiment: Analyst views are mixed: Coverage indicates that analysts remain divided on Rithm’s outlook, limiting the potential for a broad-based reassessment of the shares. Analysts Conflicted on Rithm Capital
• Negative Sentiment: Revenue and GAAP profitability were weaker: Quarterly revenue of $1.28 billion missed the $1.43 billion consensus, while GAAP net income attributable to common stockholders was only $20.2 million, or $0.04 per share. Weaker servicing revenue and higher expenses were reported as offsets to the adjusted earnings beat.

Rithm Capital Stock Up 1.9%

NYSE:RITM opened at $9.96 on Thursday. The business’s fifty day moving average price is $9.24 and its 200 day moving average price is $9.85. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 16.61 and a beta of 1.14. The company has a current ratio of 0.90, a quick ratio of 1.28 and a debt-to-equity ratio of 2.19. Rithm Capital has a 1-year low of $8.43 and a 1-year high of $12.74.

Rithm Capital (NYSE:RITM) last released its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.10. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. On average, sell-side analysts forecast that Rithm Capital will post 2.23 earnings per share for the current fiscal year.

Rithm Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 2nd will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 10.0%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital’s dividend payout ratio is presently 91.74%.

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.