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Where Rithm Capital Stands With Analysts

Author: Benzinga Insights | May 10, 2024 04:01pm

11 analysts have expressed a variety of opinions on Rithm Capital (NYSE:RITM) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 7 0 0 0
Last 30D 1 0 0 0 0
1M Ago 0 5 0 0 0
2M Ago 0 1 0 0 0
3M Ago 3 1 0 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $12.32, with a high estimate of $14.00 and a low estimate of $11.00. This upward trend is apparent, with the current average reflecting a 4.85% increase from the previous average price target of $11.75.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Rithm Capital among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Matt Howlett B. Riley Securities Raises Buy $14.00 $13.00
Jay McCanless Wedbush Maintains Outperform $13.00 -
Bose George Keefe, Bruyette & Woods Raises Outperform $12.50 $12.00
Trevor Cranston JMP Securities Maintains Market Outperform $11.00 -
Trevor Cranston JMP Securities Maintains Market Outperform $11.00 -
Bose George Keefe, Bruyette & Woods Raises Outperform $12.00 $11.50
Kenneth Lee RBC Capital Maintains Outperform $12.00 -
Kevin Heal Argus Research Raises Buy $12.00 $11.00
Jay McCanless Wedbush Maintains Outperform $13.00 -
Matthew Erdner JonesTrading Raises Buy $12.00 $11.00
Matt Howlett B. Riley Securities Raises Buy $13.00 $12.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Rithm Capital. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rithm Capital compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Rithm Capital's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Rithm Capital's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Rithm Capital analyst ratings.

Discovering Rithm Capital: A Closer Look

Rithm Capital Corp operates as a real estate investment trust that provides capital and services to the real estate and financial services industries. The company's mission is to generate attractive risk-adjusted returns in all interest-rate environments through a complementary portfolio of investments and operating businesses. Rithm Capital's investment portfolio is composed of mortgage servicing-related assets (full and excess MSRs and servicer advances), residential securities (and associated call rights) loans (including single-family rental), and consumer loans.

A Deep Dive into Rithm Capital's Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Rithm Capital's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 103.6%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Rithm Capital's net margin is impressive, surpassing industry averages. With a net margin of 33.89%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.49%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Rithm Capital's ROA excels beyond industry benchmarks, reaching 0.68%. This signifies efficient management of assets and strong financial health.

Debt Management: Rithm Capital's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.04, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: RITM

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