The Analyst Landscape: 6 Takes On Rithm Capital

In the last three months, 6 analysts have published ratings on Rithm Capital RITM, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Rithm Capital, revealing an average target of $12.17, a high estimate of $13.00, and a low estimate of $11.00. Marking an increase of 9.44%, the current average surpasses the previous average price target of $11.12.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Rithm Capital. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rithm Capital compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Rithm Capital's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Rithm Capital's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Rithm Capital analyst ratings.

Unveiling the Story Behind Rithm Capital

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.

Financial Milestones: Rithm Capital's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Decline in Revenue: Over the 3 months period, Rithm Capital faced challenges, resulting in a decline of approximately -21.17% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -26.07%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Rithm Capital's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.5%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Rithm Capital's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.25%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Rithm Capital's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.19, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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