Rithm Capital (NYSE:RITM) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Rithm Capital (NYSE:RITM) issued its quarterly earnings results on Tuesday. The real estate investment trust reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.02), FiscalAI reports. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.25 billion. Rithm Capital had a return on equity of 19.74% and a net margin of 15.55%.

Here are the key takeaways from Rithm Capital’s conference call:

• Rithm reported a solid quarter with $0.51 per diluted share (EAD), $289.6M in earnings (~17% ROE), GAAP net income of $67.8M, a book value of $7B ($12.51), ~ $1.4B of liquidity, and a $0.25 quarterly dividend (10.5% yield).
• Asset-management momentum continues: Sculptor raised a $4.6B real estate fund and ended Q1 with ~$37B AUM while Crestline contributes ~ $20B AUM, and the firm deployed >$2B in corporate credit plus >$1B in ABF investments in the quarter.
• Newrez performed strongly—~$274M pre-tax income (ex. MTM), ~19% ROE, $15.5B funded volume and an ~ $850B servicing portfolio—and expects material efficiency gains from AI/Valon and HomeVision partnerships (>$65M annual expense savings targeted).
• Elecor (formerly Paramount) shows leasing momentum and operational upside: a 9.9M sq ft core portfolio ~85.7% leased (NYC core >92%), identified roughly $40M of annual management EBITDA savings, and is executing JV financings and amenity-driven repositioning to lift rents and occupancy.
• Management admits the company is complex and may trade below sum-of-the-parts value, and industry headline risks (private-credit retail flows, consumer pressure, proposed build-to-rent rules) could create near-term investor confusion or valuation pressure despite stated opportunities.

Rithm Capital Stock Up 3.0%

NYSE RITM traded up $0.29 during trading hours on Thursday, reaching $9.95. 2,938,206 shares of the company’s stock were exchanged, compared to its average volume of 10,630,458. The company has a market capitalization of $5.55 billion, a price-to-earnings ratio of 9.56 and a beta of 1.19. Rithm Capital has a one year low of $8.43 and a one year high of $12.74. The company’s 50-day moving average is $9.76 and its two-hundred day moving average is $10.64. 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 Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Monday, April 6th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 10.1%. The ex-dividend date of this dividend is Monday, April 6th. Rithm Capital’s dividend payout ratio is presently 96.15%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. JonesTrading restated a “buy” rating and set a $13.50 target price on shares of Rithm Capital in a research report on Tuesday. BTIG Research restated a “buy” rating and set a $16.00 target price on shares of Rithm Capital in a research report on Friday, April 10th. UBS Group cut their target price on shares of Rithm Capital from $15.00 to $14.50 and set a “buy” rating on the stock in a research report on Friday, April 10th. Wall Street Zen upgraded shares of Rithm Capital from a “hold” rating to a “buy” rating in a research report on Saturday, March 7th. Finally, Capital One Financial set a $12.50 price target on shares of Rithm Capital in a research report on Thursday, April 9th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Rithm Capital presently has an average rating of “Moderate Buy” and an average target price of $14.06.

Hedge Funds Weigh In On Rithm Capital

Hedge funds have recently made changes to their positions in the business. Ausdal Financial Partners Inc. bought a new position in shares of Rithm Capital during the 2nd quarter worth approximately $195,000. Aptus Capital Advisors LLC grew its stake in shares of Rithm Capital by 10.3% during the 3rd quarter. Aptus Capital Advisors LLC now owns 17,164 shares of the real estate investment trust’s stock worth $195,000 after acquiring an additional 1,601 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of Rithm Capital during the 2nd quarter worth approximately $184,000. Evolve Private Wealth LLC bought a new position in shares of Rithm Capital during the 4th quarter worth approximately $154,000. Finally, CIBC Private Wealth Group LLC grew its stake in shares of Rithm Capital by 35.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 12,527 shares of the real estate investment trust’s stock worth $143,000 after acquiring an additional 3,307 shares in the last quarter. 44.92% of the stock is owned by institutional investors.

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.