Wall Street Zen Upgrades Rithm Capital (NYSE:RITM) to “Buy”

Rithm Capital (NYSE:RITM) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

Several other analysts also recently issued reports on the company. UBS Group set a $15.00 price target on Rithm Capital in a research note on Friday, February 6th. Weiss Ratings restated a “hold (c+)” rating on shares of Rithm Capital in a research note on Monday, December 29th. Piper Sandler reiterated an “overweight” rating and issued a $15.00 price objective (down from $15.50) on shares of Rithm Capital in a research note on Wednesday, February 4th. Wedbush initiated coverage on shares of Rithm Capital in a report on Monday, December 15th. They issued an “outperform” rating and a $14.00 price objective for the company. Finally, Keefe, Bruyette & Woods restated an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, Rithm Capital currently has a consensus rating of “Moderate Buy” and an average target price of $14.50.

Rithm Capital Stock Performance

Shares of RITM stock opened at $9.66 on Friday. Rithm Capital has a 52 week low of $9.13 and a 52 week high of $12.74. The company has a market capitalization of $5.37 billion, a price-to-earnings ratio of 9.29 and a beta of 1.21. The company has a 50-day simple moving average of $10.92 and a 200 day simple moving average of $11.26. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58.

Rithm Capital (NYSE:RITM) last released its quarterly earnings results on Tuesday, February 3rd. The real estate investment trust reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.19. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%. The firm had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.24 billion. On average, sell-side analysts predict that Rithm Capital will post 1.93 earnings per share for the current year.

Institutional Investors Weigh In On Rithm Capital

A number of large investors have recently modified their holdings of the business. CoreCap Advisors LLC increased its stake in shares of Rithm Capital by 99.2% in the 4th quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock valued at $25,000 after purchasing an additional 1,143 shares during the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Rithm Capital during the 4th quarter worth $26,000. Bessemer Group Inc. boosted its stake in Rithm Capital by 658.9% in the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 2,306 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new stake in Rithm Capital in the third quarter valued at about $31,000. Finally, Garton & Associates Financial Advisors LLC bought a new position in Rithm Capital in the fourth quarter valued at about $31,000. 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.