RITM stock touches 52-week high at $12.11 amid growth

Rithm Capital Corp (RITM), a leading real estate investment trust with a market capitalization of $6.29 billion, has reached a new 52-week high, with its stock price climbing to $12.11. According to InvestingPro analysis, the company appears undervalued at current levels, making it an interesting prospect for value investors. This milestone reflects a significant uptrend in the company’s market performance, underpinned by strategic acquisitions and robust earnings reports. The stock has delivered impressive returns, with InvestingPro data showing a 23.74% total return over the past year and a YTD return of 11%. Trading at an attractive P/E ratio of 7.13 and offering a substantial dividend yield of 8.32%, RITM stands out in the current market environment. Investors attribute this growth to the company’s adaptive business model and its ability to capitalize on market trends, positioning RITM as a strong performer in the real estate investment sector. InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, which includes detailed analysis of RITM’s financial health, growth prospects, and market position among 1,400+ top US stocks.

In other recent news, Rithm Property Trust has launched a public offering of its Series C Fixed-to-Floating Cumulative Redeemable Preferred Stock, with a liquidation preference of $25.00 per share. The proceeds from this offering are intended for investment purposes and general corporate needs, with plans to list the stock on the New York Stock Exchange. Concurrently, Rithm Capital Corp. has been subject to positive analyst reviews, with RBC Capital maintaining an Outperform rating and a $13.00 price target, citing the company’s shift towards a fee-based, capital-light business model. RBC Capital noted favorable conditions due to elevated interest rates and highlighted Rithm Capital’s strategic capital allocation and asset origination capabilities.

Additionally, B.Riley has maintained a Buy rating with a $14.00 price target for Rithm Capital, emphasizing the resilience of its servicing portfolio and strategic capital deployment. The firm’s analyst pointed out that 89% of Rithm Capital’s $878 billion servicing portfolio is less likely to refinance, which supports stability against potential rate cuts. The company’s growth in its Newrez and Genesis segments was also noted, with increased market share and funded volume in originations. Rithm Capital’s liquidity position, with $2 billion available, is expected to support its near-term plans, and its dividend coverage was reported to be robust in the third quarter of 2024.

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