Rithm Capital Set to Announce Q4 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Announcement Schedule: Rithm Capital (RITM) is set to announce its Q4 earnings on February 3rd before market open, with investor focus on key metrics such as asset management revenues, mortgage servicing rights, and interest income, with a consensus EPS estimate of $0.58, reflecting a 3.3% year-over-year decline.
- Revenue Expectation Changes: The consensus revenue estimate for RITM stands at $1.24 billion, indicating a significant 41.0% year-over-year drop, while the past three months have seen three upward revisions in EPS and revenue estimates, suggesting cautious optimism about the company's future performance.
- Market Performance Analysis: Ahead of the earnings release, RITM's stock traded 1.28% lower at $10.80 during Monday's session, and currently trades approximately 6% below its 200-day simple moving average, indicating market concerns regarding its short-term performance.
- Insider Trading Dynamics: Over the past three months, RITM insiders have been net buyers, recording three open market purchases against two sell transactions, reflecting management's confidence in the company's future prospects.
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Analyst Views on RITM
Wall Street analysts forecast RITM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RITM is 14.92 USD with a low forecast of 14.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 10.940
Low
14.00
Averages
14.92
High
16.00
Current: 10.940
Low
14.00
Averages
14.92
High
16.00
About RITM
Rithm Capital Corp. is a global asset manager focused on real estate, credit and financial services. The Company makes direct investments and operates several wholly-owned operating businesses. Its segments include Origination and Servicing, Investment Portfolio, Residential Transitional Lending and Asset Management. The Company's businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, mortgage origination and servicing platforms. Sculptor Capital Management, Inc. provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. Genesis Capital LLC specializes in originating and managing a portfolio of primarily short-term business purpose mortgage loans to fund single-family and multi-family real estate developers with construction, renovation and bridge loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rithm Capital Set to Announce Q4 Earnings Results
- Earnings Announcement Schedule: Rithm Capital (RITM) is set to announce its Q4 earnings on February 3rd before market open, with investor focus on key metrics such as asset management revenues, mortgage servicing rights, and interest income, with a consensus EPS estimate of $0.58, reflecting a 3.3% year-over-year decline.
- Revenue Expectation Changes: The consensus revenue estimate for RITM stands at $1.24 billion, indicating a significant 41.0% year-over-year drop, while the past three months have seen three upward revisions in EPS and revenue estimates, suggesting cautious optimism about the company's future performance.
- Market Performance Analysis: Ahead of the earnings release, RITM's stock traded 1.28% lower at $10.80 during Monday's session, and currently trades approximately 6% below its 200-day simple moving average, indicating market concerns regarding its short-term performance.
- Insider Trading Dynamics: Over the past three months, RITM insiders have been net buyers, recording three open market purchases against two sell transactions, reflecting management's confidence in the company's future prospects.
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Rithm Capital Acquires Minority Stake in Valon Technologies
- Long-term Investment: Rithm Capital has announced a significant long-term minority equity investment in Valon Technologies, a tech firm focused on developing the AI-native mortgage servicing operating system ValonOS, indicating Rithm's continued support for its early investment.
- Technology Deployment Plan: Newrez, a subsidiary of Rithm, will begin transitioning to ValonOS in 2027 to enhance servicing for homeowners, a move expected to significantly improve customer experience and strengthen market competitiveness.
- Positive Market Outlook: The launch of ValonOS is set to bring innovation to the mortgage servicing industry, and Rithm's investment not only supports Valon's technological advancement but may also yield long-term financial returns for Rithm.
- Shareholder Value Enhancement: Through collaboration with Valon, Rithm Capital aims to enhance shareholder value by upgrading technology and optimizing services, further solidifying its leadership position in the mortgage real estate investment trust (mREIT) sector.
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