Rithm Capital (NYSE:RITM) Posts Earnings Results, Beats Expectations By $0.10 EPS

Rithm Capital (NYSE:RITM) announced its quarterly earnings data on Tuesday. The real estate investment trust reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10, FiscalAI reports. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%.The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.43 billion.

Here are the key takeaways from Rithm Capital’s conference call:

• Q2 earnings were strong, with earnings available for distribution of $338.9 million, or $0.60 per diluted share, while book value was broadly stable at approximately $12.33 per share and liquidity stood at $2.1 billion.
• The third-party asset-management platform reached approximately $61 billion of AUM, up from virtually zero in 2023, with management targeting continued growth across credit, asset-backed finance, real estate, and multi-strategy products. The multi-strategy fund was up about 8% in the first half of 2026.
• Genesis Capital delivered $1.9 billion of quarterly originations, $42 million of pretax income, and a 17% annualized operating ROE. Management sees substantial growth potential, particularly in multifamily lending and fund-driven demand for residential transitional loans.
• Newrez generated approximately $308 million of second-quarter pretax income excluding mark-to-market items, up 12% quarter over quarter, with a 22% ROE. Management also expects the planned Valon servicing-system transition to produce more than $65 million in annual expense savings beginning in 2027.
• Elecor reported improving leasing trends, including 681,000 square feet signed or pending and stronger San Francisco occupancy, but the office portfolio remains 86.5% leased overall and requires significant capital improvements. Management is pursuing asset-level joint ventures and refinancing opportunities to support the strategy.

Rithm Capital Stock Performance

RITM stock traded down $0.36 during trading hours on Thursday, reaching $9.62. The stock had a trading volume of 2,039,019 shares, compared to its average volume of 8,410,146. The stock has a market capitalization of $5.37 billion, a PE ratio of 16.06 and a beta of 1.14. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.90 and a quick ratio of 1.28. The stock has a 50-day simple moving average of $9.24 and a 200 day simple moving average of $9.85. Rithm Capital has a fifty-two week low of $8.43 and a fifty-two week high of $12.74.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 2nd will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.4%. Rithm Capital’s dividend payout ratio (DPR) is currently 91.74%.

Analysts Set New Price Targets

A number of analysts have commented on RITM shares. JonesTrading reaffirmed a “buy” rating and set a $13.50 target price on shares of Rithm Capital in a report on Tuesday, April 28th. Capital One Financial set a $12.50 price objective on shares of Rithm Capital in a research note on Thursday, April 9th. Wedbush cut 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, May 1st. BTIG Research dropped their price target on Rithm Capital from $16.00 to $13.00 and set a “buy” rating on the stock in a research report on Tuesday, June 16th. Finally, Piper Sandler decreased their price target on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $13.20.

Insider Buying and Selling at Rithm Capital

In related news, Director David Saltzman sold 80,922 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the transaction, the director directly owned 44,248 shares of the company’s stock, valued at approximately $409,294. The trade was a 64.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.57% of the stock is owned by corporate insiders.

Institutional Trading of Rithm Capital

Hedge funds and other institutional investors have recently bought and sold shares of the business. Los Angeles Capital Management LLC bought a new position in Rithm Capital in the fourth quarter valued at approximately $26,000. Garton & Associates Financial Advisors LLC bought a new position in shares of Rithm Capital in the 4th quarter valued at $31,000. Advisory Services Network LLC bought a new position in shares of Rithm Capital in the 3rd quarter valued at $43,000. Danske Bank A S acquired a new position in shares of Rithm Capital during the 3rd quarter worth $46,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Rithm Capital during the third quarter worth about $46,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

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.