Rithm Capital (NYSE:RITM) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

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

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 7.3%

Shares of RITM stock traded up $0.64 on Friday, hitting $9.31. The stock had a trading volume of 5,094,021 shares, compared to its average volume of 7,666,624. 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 50 day moving average of $9.42 and a 200 day moving average of $9.49. Rithm Capital has a 12-month low of $8.31 and a 12-month high of $12.15. The stock has a market cap of $5.20 billion, a price-to-earnings ratio of 15.53, a price-to-earnings-growth ratio of 0.54 and a beta of 1.16.

Rithm Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 1st will be issued a $0.25 dividend. The ex-dividend date is Thursday, October 1st. This represents a $1.00 annualized dividend and a dividend yield of 10.7%. Rithm Capital’s dividend payout ratio is currently 166.67%.

Insiders Place Their Bets

In related news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction dated 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 in the company, valued at approximately $837,396.62. The trade was a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.57% of the company’s stock.

Trending Headlines about Rithm Capital

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

Analysts Set New Price Targets

RITM has been the subject of several research reports. Piper Sandler reduced their target price on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Wall Street Zen raised Rithm Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. BTIG Research dropped their price target on Rithm Capital from $13.00 to $12.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Finally, Wedbush reissued an “outperform” rating and issued a $10.00 price objective on shares of Rithm Capital in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Rithm Capital presently has an average rating of “Moderate Buy” and an average price target of $12.80.

About Rithm Capital

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.