Company Performance - Rithm (RITM) closed at $10.77, with a daily increase of +1.13%, underperforming the S&P 500's gain of 1.56% [1] - The stock has decreased by 13.97% over the past month, contrasting with the Finance sector's loss of 2.31% and the S&P 500's gain of 0.41% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $0.54, indicating no change from the same quarter last year [2] - Revenue is estimated at $1 billion, reflecting a significant increase of 61.46% compared to the equivalent quarter last year [2] Annual Estimates - For the annual period, earnings are expected to be $2.15 per share, showing a +2.38% change from the previous year, while revenue is projected at $4.3 billion, indicating a decrease of -17.89% [3] Analyst Sentiment - Recent adjustments to analyst estimates are crucial, as positive revisions suggest optimism regarding the company's business and profitability [3][4] - The Zacks Consensus EPS estimate has increased by 1.34% over the past month, positioning Rithm with a Zacks Rank of 2 (Buy) [5] Valuation Metrics - Rithm is currently trading at a Forward P/E ratio of 4.97, significantly lower than the industry average of 11.98, suggesting it is trading at a discount [6] - The Financial - Miscellaneous Services industry, part of the Finance sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [6]

Core Viewpoint - Rithm (RITM) has experienced a significant decline of 12.4% over the past four weeks, but it is now in oversold territory, indicating a potential for a trend reversal as analysts expect better earnings than previously predicted [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2] - RITM's current RSI reading is 24.6, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that RITM's earnings estimates for the current year have increased by 1.3% over the last 30 days, which often correlates with near-term price appreciation [7] - RITM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Core Viewpoint - KBRA has assigned preliminary ratings to eight classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM5, a $500.9 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1] Group 1: Transaction Details - The total size of the transaction is $500.9 million [1] - The transaction is categorized as a non-prime RMBS [1] - Rithm Capital Corp, formerly known as New Residential Investment Corp, is the sponsor of the transaction [1] Group 2: Underlying Mortgages - The underlying mortgages in the pool were primarily originated by Champions Funding, LLC (31.9%), NewRez LLC (24.8%), and Home Express [1]

Core Insights - The article focuses on Rithm Capital Corporation (NYSE: RITM) and its latest addition to the fixed-income vehicles listed on the exchange [1] Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] - It is part of a series dedicated to newly listed fixed-income vehicles, indicating a focus on investment opportunities in this sector [1] - The author discloses no current positions in Rithm Capital Corporation or plans to initiate any within the next 72 hours, emphasizing an unbiased perspective [1]

Core Viewpoint - Rithm Capital (NYSE: RITM) supports its dividend through distributable earnings and has a history of making accretive acquisitions, which have expanded its investment scope beyond mortgages while diversifying its revenue mix [1] Group 1 - Rithm Capital has a strong focus on maintaining its dividend through distributable earnings [1] - The company has a track record of making accretive acquisitions that enhance its investment portfolio [1] - Rithm Capital continues to diversify its revenue mix beyond traditional mortgage investments [1]

Core Insights - Rithm Capital Corp. (NYSE:RITM) is recognized as a strong candidate for high yield investments and dividend capture strategies in October [1][4]. Group 1: Company Overview - Rithm Capital Corp. is a real estate investment trust (REIT) engaged in structured finance and asset management, known for its strategic acquisitions [2]. - The company has made significant acquisitions, including Sculptor Capital Management in 2023 and a pending acquisition of Computershare Mortgage Services, aimed at increasing its assets under management (AUM) [2]. Group 2: Financial Performance - Rithm Capital's strategy emphasizes diversification and strengthening its mortgage servicing and origination platforms, contributing to its strong financial results [3]. - On September 17, Rithm declared a quarterly dividend of $0.25 per share, maintaining its consistent dividend payments for the past ten years, with a current dividend yield of 8.03% as of September 27 [4].

Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) [1][2] - The analysis focuses on RITM's recent results, dividend rates, yield percentages, and sustainability metrics [3][4] Summary of RITM's Performance - RITM's book value as of June 30, 2025, is compared to its peers, aiding in understanding its financial standing [2] - RITM declared a dividend of $0.25 per common share for Q2 2025, unchanged from the previous quarter, resulting in a trailing twelve-month (TTM) dividend yield of 8.92% [16][28] - The annual forward yield based on RITM's stock price as of June 20, 2025, is also 8.92%, while the yield based on its book value is 7.87% [16] Dividend Sustainability Analysis - RITM's dividend sustainability is assessed through its core earnings, with a current payout ratio of 46% for Q2 2025, indicating a strong ability to maintain dividends [23][24] - The article projects a very high probability (90%) of maintaining a dividend between $0.25 and $0.30 per share for Q4 2025 and Q1 2026 [30] - RITM's core earnings available for distribution (EAD) for Q1 and Q2 2025 are reported at $275.3 million and $291.1 million, respectively, with earnings per share of $0.52 and $0.54 [23] Comparative Metrics - RITM's TTM dividend yield and annual forward yield are noted to be below average compared to its peers, indicating potential for future adjustments [28] - The analysis includes a comparison of RITM's leverage ratio, which is lower than that of its peer PMT, suggesting a conservative approach to risk management [17] Future Outlook - The article anticipates a gradual increase in net interest spreads starting in late 2025, which could positively impact RITM's earnings and dividend sustainability [25] - RITM's stock price as of September 19, 2025, was $12.11, with projections indicating a price target of approximately $14.35 per share, suggesting potential for appreciation [34][37]

Core Insights - Rithm Capital (NYSE: RITM) is developing a well-diversified platform of complementary businesses aimed at transforming the internally managed mortgage REIT [1] - Recent acquisitions are viewed as strategic moves rather than distractions, indicating a focus on long-term growth [1] - Pacifica Yield is targeting long-term wealth creation by investing in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Company Summary - Rithm Capital is positioning itself to enhance its business model through diversification and strategic acquisitions [1] - The company is focused on creating value in the equity market, leveraging daily price fluctuations for wealth generation [1] Industry Context - The equity market serves as a mechanism for wealth creation or destruction over the long term, highlighting the importance of strategic investment choices [1] - The emphasis on high-dividend stocks and green energy firms reflects a growing trend in the investment landscape towards sustainable and income-generating assets [1]

Core Viewpoint - Rithm Capital Corp. has announced a public offering of 7,600,000 shares of its 8.75% Series E Fixed-Rate Cumulative Redeemable Preferred Stock, aiming for gross proceeds of approximately $190 million before expenses [1]. Summary by Relevant Sections - **Offering Details** - The offering consists of 7,600,000 shares of Preferred Stock with a liquidation preference of $25.00 per share [1]. - The gross proceeds from the offering are expected to be around $190 million, excluding underwriting discounts and other estimated expenses [1]. - **Listing Intentions** - The Company plans to apply for the listing of the Preferred Stock on a stock exchange [1].

Core Insights - Rithm Capital Corp. (RITM) has agreed to acquire Paramount Group, Inc. (PGRE) for approximately $1.6 billion in cash, marking a strategic expansion into real estate ownership and operations [1][4][7] - The acquisition includes a portfolio of 13 owned and four managed properties, totaling over 13.1 million square feet of Class A office space, primarily located in New York City and San Francisco [3][7] - Paramount shareholders will receive $6.60 per fully diluted share, which is a significant discount compared to its previous closing price of $7.39 [2][7] Company Performance - Following the announcement, Rithm Capital's shares increased by 3.2%, while Paramount's shares fell by 11.6% [2][7] - Rithm Capital's stock has gained 15.1% year to date, outperforming the broader industry [6] Financial Metrics - The transaction is expected to be funded through Rithm Capital's available cash, balance sheet liquidity, and potentially co-investors [4] - Rithm Capital trades at a forward price-to-earnings ratio of 5.70X, significantly below the industry average of 25.60X [9] Market Context - The acquisition signals renewed institutional interest in urban office assets, particularly in gateway cities, as evidenced by recent transactions in the sector [5] - The Zacks Consensus Estimate for Rithm Capital's 2025 earnings suggests a year-over-year increase of approximately 1%, followed by a growth of 4.6% in the subsequent year [11]