Royal Bank Of Canada Has Lowered Expectations for Rithm Capital (NYSE:RITM) Stock Price

Rithm Capital (NYSE:RITM) had its price objective reduced by stock analysts at Royal Bank Of Canada from $14.00 to $13.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an “outperform” rating on the real estate investment trust’s stock. Royal Bank Of Canada’s target price suggests a potential upside of 32.72% from the stock’s current price.

Several other equities analysts have also commented on the company. Wall Street Zen raised Rithm Capital from a “hold” rating to a “buy” rating in a report on Saturday, March 7th. Capital One Financial set a $12.50 target price on Rithm Capital in a report on Thursday, April 9th. BTIG Research reissued a “buy” rating and issued a $16.00 target price on shares of Rithm Capital in a report on Friday, April 10th. JonesTrading reissued a “buy” rating and issued a $13.50 target price on shares of Rithm Capital in a report on Tuesday, April 28th. Finally, Wedbush dropped their target price on Rithm Capital from $14.00 to $12.50 and set an “outperform” rating on the stock in a report on Friday. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $13.63.

Rithm Capital Stock Performance

NYSE:RITM opened at $9.80 on Friday. The firm has a market capitalization of $5.47 billion, a PE ratio of 8.99 and a beta of 1.17. The business’s fifty day moving average price is $9.75 and its 200 day moving average price is $10.64. The company has a debt-to-equity ratio of 2.20, a current ratio of 0.58 and a quick ratio of 0.58. Rithm Capital has a 12 month low of $8.43 and a 12 month high of $12.74.

Rithm Capital (NYSE:RITM) last posted its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing the consensus estimate of $0.53 by ($0.02). The business had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.27 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.69%. On average, sell-side analysts anticipate that Rithm Capital will post 2.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rithm Capital

Several large investors have recently bought and sold shares of RITM. CoreCap Advisors LLC boosted its stake in Rithm Capital by 99.2% in the fourth quarter. CoreCap Advisors LLC now owns 2,295 shares of the real estate investment trust’s stock valued at $25,000 after acquiring an additional 1,143 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Rithm Capital during the fourth quarter worth about $26,000. Bessemer Group Inc. boosted its stake in shares of Rithm Capital by 658.9% during the third quarter. Bessemer Group Inc. now owns 2,656 shares of the real estate investment trust’s stock worth $30,000 after buying an additional 2,306 shares during the period. Atlantic Union Bankshares Corp acquired a new stake in shares of Rithm Capital during the third quarter worth about $31,000. Finally, FNY Investment Advisers LLC acquired a new stake in shares of Rithm Capital during the fourth quarter worth about $31,000. Institutional investors and hedge funds own 44.92% of the company’s stock.

About Rithm Capital

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.