Rithm Capital (NYSE:RITM) Posts Earnings Results, Beats Estimates By $0.05 EPS

Rithm Capital (NYSE:RITM) issued its quarterly earnings data on Friday. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05, FiscalAI reports. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%.

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

• Strong third-quarter results included $0.55 of EAD per diluted share, $315 million of EAD, $217 million of GAAP net income, and a 24% operating ROE at NewRez; EAD has exceeded dividends for 28 consecutive quarters.
• NewRez’s approximately $880 billion MSR portfolio continued to benefit from higher interest rates and low prepayment speeds, while the servicing platform added 15 clients and roughly $80 billion of loan boardings year to date.
• Management expects about $125 million in annual NewRez savings from AI and technology investments, with HomeVision straight-through processing expected in the fourth quarter and migration to Valon’s servicing platform beginning in early 2027.
• Asset management momentum continued, with $569 million of new capital raised during the quarter, more than $60 billion of third-party AUM, and a target of $75 billion-$80 billion by the end of 2028; management highlighted strong demand for asset-backed finance, credit, and real estate strategies.
• Mortgage originations faced pressure from higher rates, with NewRez funded volume down 19% sequentially and management expecting roughly a 25% decline from September to October; gain-on-sale margins, particularly in wholesale, remain under competitive pressure.

Rithm Capital Trading Up 7.3%

RITM stock traded up $0.64 during mid-day trading on Friday, reaching $9.31. The company’s stock had a trading volume of 5,094,021 shares, compared to its average volume of 7,666,624. The company has a market cap of $5.20 billion, a price-to-earnings ratio of 15.53, a price-to-earnings-growth ratio of 0.54 and a beta of 1.16. The business’s 50 day moving average price is $9.42 and its 200 day moving average price is $9.49. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 2.19. Rithm Capital has a 12 month low of $8.31 and a 12 month high of $12.15.

Rithm Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 1st will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 annualized dividend and a yield of 10.7%. Rithm Capital’s dividend payout ratio (DPR) is currently 166.67%.

Analyst Ratings Changes

RITM has been the subject of a number of recent analyst reports. Wedbush reissued an “outperform” rating and set a $10.00 target price on shares of Rithm Capital in a research report on Thursday. BTIG Research dropped their price target on shares of Rithm Capital from $13.00 to $12.00 and set a “buy” rating on the stock in a research report on Monday, October 12th. Wall Street Zen upgraded shares of Rithm Capital from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Weiss Ratings lowered shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 2nd. Finally, UBS Group reduced their price objective on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a research note on Friday, August 21st. Ten analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $12.80.

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

Insider Transactions at Rithm Capital

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the transaction, the director directly owned 82,259 shares of the company’s stock, valued at approximately $837,396.62. The trade was a 15.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.57% of the company’s stock.

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.