What 4 Analyst Ratings Have To Say About Rithm Capital

Analysts' ratings for Rithm Capital RITM over the last quarter vary from bullish to bearish, as provided by 4 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $12.12, a high estimate of $13.00, and a low estimate of $11.00. Surpassing the previous average price target of $11.17, the current average has increased by 8.5%.

Investigating Analyst Ratings: An Elaborate Study

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.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Rithm Capital. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rithm Capital compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Rithm Capital's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent 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.

A Deep Dive into Rithm Capital's Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Negative Revenue Trend: Examining Rithm Capital's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -21.17% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Rithm Capital's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -26.07%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Rithm Capital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.5%, the company may encounter challenges in delivering satisfactory returns for shareholders.

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 surpasses industry norms, standing at 4.19. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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