Wedbush Has Optimistic Outlook of Rithm Capital Q1 Earnings

Rithm Capital Corp. (NYSE:RITM - Free Report) - Analysts at Wedbush boosted their Q1 2025 EPS estimates for shares of Rithm Capital in a research note issued to investors on Thursday, November 7th. Wedbush analyst J. Mccanless now expects that the real estate investment trust will post earnings of $0.50 per share for the quarter, up from their prior forecast of $0.47. Wedbush has a "Outperform" rating and a $14.00 price objective on the stock. The consensus estimate for Rithm Capital's current full-year earnings is $1.85 per share. Wedbush also issued estimates for Rithm Capital's Q2 2025 earnings at $0.45 EPS, Q3 2025 earnings at $0.46 EPS, Q4 2025 earnings at $0.49 EPS and FY2026 earnings at $1.95 EPS.

Rithm Capital (NYSE:RITM - Get Free Report) last announced its earnings results on Tuesday, October 29th. The real estate investment trust reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.12. The firm 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 quarter in the prior year, the company earned $0.58 EPS.

A number of other analysts also recently weighed in on the stock. Royal Bank of Canada reissued an "outperform" rating and issued a $13.00 price target on shares of Rithm Capital in a report on Tuesday, August 13th. JMP Securities increased their target price on shares of Rithm Capital from $11.00 to $12.50 and gave the company a "market outperform" rating in a research note on Friday, July 19th. One investment analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $12.78.

Rithm Capital Stock Performance

Shares of RITM traded up $0.11 during mid-day trading on Friday, hitting $10.78. The company's stock had a trading volume of 3,960,190 shares, compared to its average volume of 4,573,644. The stock's 50-day moving average is $11.08 and its two-hundred day moving average is $11.16. The firm has a market capitalization of $5.60 billion, a PE ratio of 10.89 and a beta of 1.80. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.49 and a current ratio of 1.35. Rithm Capital has a one year low of $9.68 and a one year high of $12.02.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Rithm Capital by 154.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,513 shares of the real estate investment trust's stock worth $27,000 after buying an additional 1,525 shares in the last quarter. Bessemer Group Inc. acquired a new position in Rithm Capital during the first quarter worth $30,000. Abich Financial Wealth Management LLC lifted its holdings in shares of Rithm Capital by 56.8% during the first quarter. Abich Financial Wealth Management LLC now owns 4,031 shares of the real estate investment trust's stock valued at $45,000 after acquiring an additional 1,461 shares during the period. Godsey & Gibb Inc. acquired a new stake in shares of Rithm Capital in the 3rd quarter valued at $51,000. Finally, Future Financial Wealth Managment LLC acquired a new stake in shares of Rithm Capital during the 3rd quarter worth about $73,000. Institutional investors own 44.92% of the company's stock.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, November 1st. Investors of record on Tuesday, October 1st were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 9.28%. The ex-dividend date was Tuesday, October 1st. Rithm Capital's dividend payout ratio (DPR) is presently 101.01%.

About Rithm Capital

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.