B. Riley Analysts Boost Earnings Estimates for Rithm Capital

Rithm Capital Corp. (NYSE:RITM) – B. Riley raised their FY2024 earnings per share estimates for Rithm Capital in a research report issued on Monday, December 16th. B. Riley analyst M. Howlett now forecasts that the real estate investment trust will post earnings of $1.96 per share for the year, up from their previous estimate of $1.88. The consensus estimate for Rithm Capital’s current full-year earnings is $1.93 per share.

Rithm Capital (NYSE:RITM) last announced its quarterly earnings data on Tuesday, October 29th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.42 by $0.12. The company had revenue of $619.51 million during the quarter, compared to the consensus estimate of $1.11 billion. Rithm Capital had a return on equity of 17.54% and a net margin of 14.99%. During the same period in the previous year, the company posted $0.58 EPS.

A number of other research firms have also recently weighed in on RITM. Royal Bank of Canada restated an “outperform” rating and set a $13.00 target price on shares of Rithm Capital in a research note on Thursday, November 21st. Keefe, Bruyette & Woods upped their price objective on Rithm Capital from $13.00 to $13.50 and gave the stock an “outperform” rating in a research note on Tuesday, December 3rd. Finally, Wedbush reissued an “outperform” rating and set a $14.00 target price on shares of Rithm Capital in a research note on Thursday, November 7th. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat.com, Rithm Capital presently has an average rating of “Moderate Buy” and an average target price of $12.94.

Rithm Capital Price Performance

Shares of NYSE:RITM opened at $11.06 on Wednesday. The company has a market capitalization of $5.75 billion, a P/E ratio of 11.17 and a beta of 1.80. Rithm Capital has a 1-year low of $9.97 and a 1-year high of $12.02. The firm’s 50 day simple moving average is $10.84 and its two-hundred day simple moving average is $11.13. The company has a debt-to-equity ratio of 1.63, a current ratio of 1.35 and a quick ratio of 1.35.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RITM. Geode Capital Management LLC grew its position in Rithm Capital by 7.8% in the third quarter. Geode Capital Management LLC now owns 8,415,057 shares of the real estate investment trust’s stock worth $95,537,000 after acquiring an additional 610,698 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of Rithm Capital by 7.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 5,364,962 shares of the real estate investment trust’s stock worth $60,892,000 after purchasing an additional 366,600 shares during the period. Azora Capital LP boosted its holdings in shares of Rithm Capital by 107.6% in the 3rd quarter. Azora Capital LP now owns 4,383,821 shares of the real estate investment trust’s stock worth $49,756,000 after purchasing an additional 2,271,671 shares during the period. Wellington Management Group LLP increased its position in shares of Rithm Capital by 37.8% during the 3rd quarter. Wellington Management Group LLP now owns 3,567,917 shares of the real estate investment trust’s stock valued at $40,496,000 after purchasing an additional 978,954 shares during the last quarter. Finally, Soros Fund Management LLC purchased a new stake in Rithm Capital during the 3rd quarter valued at $23,835,000. 44.92% of the stock is owned by hedge funds and other institutional investors.

Rithm Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 9.05%. The ex-dividend date is Tuesday, December 31st. Rithm Capital’s payout ratio is 101.01%.

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.