Rithm Capital (NYSE:RITM) Shares Gap Up on Earnings Beat

Shares of Rithm Capital Corp. (NYSE:RITM) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $8.68, but opened at $9.13. Rithm Capital shares last traded at $9.1960, with a volume of 2,322,331 shares.

The real estate investment trust reported $0.55 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%.

Rithm Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 10.9%. The ex-dividend date of this dividend is Thursday, October 1st. Rithm Capital’s payout ratio is presently 166.67%.

Key Rithm Capital News

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

• Positive Sentiment: Rithm reported third-quarter earnings available for distribution of $0.55 per diluted share, above consensus estimates of approximately $0.50–$0.51 and up from $0.54 a year earlier. Total revenue rose to $1.76 billion from $1.28 billion in the second quarter, representing a 17.71% revenue surprise. Rithm Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company reported $315.3 million of earnings available for distribution and declared a quarterly common dividend of $0.25 per share, supporting the stock’s income appeal. Rithm Capital Reports Q3 2026 GAAP Net Income
• Positive Sentiment: Management pointed to continued expansion of its fee-based asset-management platform, with assets under management of approximately $61 billion. Newrez generated $329.7 million of pre-tax operating income, while Genesis Capital originated $1.5 billion of residential transition loans. Rithm Capital Announces Third Quarter 2026 Results
• Positive Sentiment: Wedbush reaffirmed its Outperform rating and set a $10 price target, implying roughly 8% upside based on the cited reference price. Wedbush Reaffirms Rithm Rating
• Neutral Sentiment: GAAP net income attributable to common stockholders was $217.1 million, or $0.38 per diluted share. The larger $0.55 figure is a non-GAAP distribution measure, so investors may focus on the quality and sustainability of earnings in addition to the headline beat. Rithm Q3 Earnings Snapshot

Analysts Set New Price Targets

RITM has been the topic of a number of recent research reports. Wedbush reaffirmed an “outperform” rating and set a $10.00 price objective on shares of Rithm Capital in a research report on Thursday. Weiss Ratings downgraded shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. BTIG Research decreased their price target on shares of Rithm Capital from $13.00 to $12.00 and set a “buy” rating for the company in a research report on Monday, October 12th. UBS Group lowered their price target on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a report on Friday, August 21st. Finally, Piper Sandler cut their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Ten research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $12.80.

Insider Activity at Rithm Capital

In other news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total transaction of $147,813.60. Following the completion of the sale, the director owned 82,259 shares in the company, valued at approximately $837,396.62. This represents a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.57% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Royal Fund Management LLC acquired a new stake in Rithm Capital in the 3rd quarter worth approximately $95,000. Foster Victor Wealth Advisors LLC increased its stake in Rithm Capital by 3.0% during the 3rd quarter. Foster Victor Wealth Advisors LLC now owns 68,405 shares of the real estate investment trust’s stock valued at $577,000 after purchasing an additional 1,967 shares in the last quarter. Range Financial Group LLC raised its holdings in shares of Rithm Capital by 0.7% in the third quarter. Range Financial Group LLC now owns 178,876 shares of the real estate investment trust’s stock worth $1,597,000 after buying an additional 1,329 shares during the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of Rithm Capital by 25.6% in the third quarter. Nisa Investment Advisors LLC now owns 61,734 shares of the real estate investment trust’s stock worth $551,000 after buying an additional 12,579 shares during the last quarter. Finally, Diversify Advisory Services LLC raised its holdings in shares of Rithm Capital by 3.7% in the third quarter. Diversify Advisory Services LLC now owns 57,409 shares of the real estate investment trust’s stock worth $500,000 after buying an additional 2,036 shares during the last quarter. 44.92% of the stock is owned by institutional investors and hedge funds.

Rithm Capital Stock Up 5.5%

The company’s 50 day moving average price is $9.42 and its 200 day moving average price is $9.49. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.19. The firm has a market capitalization of $5.12 billion, a price-to-earnings ratio of 15.27, a P/E/G ratio of 0.54 and a beta of 1.16.

Rithm Capital Company Profile

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.