Rithm Capital (NYSE:RITM) Issues Earnings Results

Rithm Capital (NYSE:RITM) announced its quarterly earnings data on Friday. The real estate investment trust reported $0.55 EPS for the quarter, beating analysts’ consensus estimates of $0.50 by $0.05, FiscalAI reports. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%.

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

• Strong third-quarter results included $0.55 of EAD per diluted share, $315 million of EAD, $217 million of GAAP net income, and a 24% operating ROE at NewRez; EAD has exceeded dividends for 28 consecutive quarters.
• NewRez’s approximately $880 billion MSR portfolio continued to benefit from higher interest rates and low prepayment speeds, while the servicing platform added 15 clients and roughly $80 billion of loan boardings year to date.
• Management expects about $125 million in annual NewRez savings from AI and technology investments, with HomeVision straight-through processing expected in the fourth quarter and migration to Valon’s servicing platform beginning in early 2027.
• Asset management momentum continued, with $569 million of new capital raised during the quarter, more than $60 billion of third-party AUM, and a target of $75 billion-$80 billion by the end of 2028; management highlighted strong demand for asset-backed finance, credit, and real estate strategies.
• Mortgage originations faced pressure from higher rates, with NewRez funded volume down 19% sequentially and management expecting roughly a 25% decline from September to October; gain-on-sale margins, particularly in wholesale, remain under competitive pressure.

Rithm Capital Stock Up 8.4%

Shares of RITM stock traded up $0.72 during trading hours on Friday, reaching $9.40. The company had a trading volume of 6,383,435 shares, compared to its average volume of 7,670,389. Rithm Capital has a 12 month low of $8.31 and a 12 month high of $12.15. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.58 and a quick ratio of 0.58. The business has a fifty day simple moving average of $9.42 and a 200-day simple moving average of $9.49. The company has a market cap of $5.25 billion, a price-to-earnings ratio of 15.67, a price-to-earnings-growth ratio of 0.54 and a beta of 1.16.

Rithm Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 10.6%. Rithm Capital’s dividend payout ratio is 166.67%.

Insider Buying and Selling

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of Rithm Capital stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the transaction, the director directly owned 82,259 shares of the company’s stock, valued at $837,396.62. The trade was a 15.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.57% of the company’s stock.

Analysts Set New Price Targets

RITM has been the topic of a number of recent research reports. BTIG Research cut their target price on Rithm Capital from $13.00 to $12.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Wedbush restated an “outperform” rating and set a $10.00 price target on shares of Rithm Capital in a research note on Thursday. Wall Street Zen upgraded shares of Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. UBS Group lowered their price objective on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating on the stock in a report on Friday, August 21st. Finally, Piper Sandler dropped their price objective on shares of Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. Ten research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.80.

Rithm Capital News Summary

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Rithm reported third-quarter earnings available for distribution of $0.55 per diluted share, above consensus estimates of approximately $0.50–$0.51 and up from $0.54 a year earlier. Total revenue rose to $1.76 billion from $1.28 billion in the second quarter, representing a 17.71% revenue surprise. Rithm Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company reported $315.3 million of earnings available for distribution and declared a quarterly common dividend of $0.25 per share, supporting the stock’s income appeal. Rithm Capital Reports Q3 2026 GAAP Net Income
• Positive Sentiment: Management pointed to continued expansion of its fee-based asset-management platform, with assets under management of approximately $61 billion. Newrez generated $329.7 million of pre-tax operating income, while Genesis Capital originated $1.5 billion of residential transition loans. Rithm Capital Announces Third Quarter 2026 Results
• Positive Sentiment: Wedbush reaffirmed its Outperform rating and set a $10 price target, implying roughly 8% upside based on the cited reference price. Wedbush Reaffirms Rithm Rating
• Neutral Sentiment: GAAP net income attributable to common stockholders was $217.1 million, or $0.38 per diluted share. The larger $0.55 figure is a non-GAAP distribution measure, so investors may focus on the quality and sustainability of earnings in addition to the headline beat. Rithm Q3 Earnings Snapshot

Rithm Capital Company Profile

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.