Core Viewpoint - Rithm (RITM) shares have increased by 3.1% in the past four weeks, closing at $11.33, with a potential upside of 25.4% based on Wall Street analysts' mean price target of $14.21 [1] Price Targets - The average price target consists of seven estimates ranging from a low of $12.50 to a high of $16.00, with a standard deviation of $1.19, indicating a potential increase of 10.3% to 41.2% from the current price [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [9] Analyst Sentiment - Analysts are optimistic about RITM's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][11] - The Zacks Consensus Estimate for the current year has risen by 0.2% over the past month, with one estimate increasing and no negative revisions [12] Zacks Rank - RITM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13] Caution on Price Targets - While price targets are a common metric, they should be approached with skepticism as they can mislead investors; analysts may set overly optimistic targets due to business incentives [3][8][10]

Core Insights - Rithm Capital Corp. has successfully completed the acquisition of Crestline Management, L.P., which is a significant move in its strategy to enhance its asset management platform [1] Group 1: Acquisition Details - The acquisition of Crestline is aimed at building an integrated and diversified asset management platform [1] - This strategic move is intended to deliver differentiated investment offerings to both institutional and private wealth investors [1] Group 2: Strategic Implications - The combination of Rithm, Crestline, and Sculptor will result in over 200 investment strategies being offered [1]

Core Viewpoint - Rithm Capital Corp. is making headlines in the mortgage REIT sector due to its strategic shift towards becoming an alternative asset manager, which has garnered significant investor interest [1]. Company Overview - Rithm Capital Corp. (RITM) is transitioning from a mortgage REIT to an alternative asset manager, indicating a significant change in its business model [1]. - The company has been under observation by investors who are eager to see how this transition unfolds [1]. Industry Context - The mortgage REIT sector has experienced various cycles, including the rise and fall of subprime mortgage REITs and a resurgence post the Great Financial Crisis [1]. - The expansion of mortgage REITs into mortgage servicing rights and other real estate-related investments reflects the evolving landscape of the industry [1].

Core Viewpoint - Rithm (RITM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Rithm suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record of performance [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10]. Recent Earnings Estimate Revisions for Rithm - For the fiscal year ending December 2025, Rithm is expected to earn $2.15 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1.6% over the past three months [8].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Rithm (RITM), and emphasizes the importance of using these recommendations in conjunction with other indicators like the Zacks Rank for making informed investment decisions [1][5]. Brokerage Recommendations for Rithm - Rithm has an average brokerage recommendation (ABR) of 1.44, indicating a consensus between Strong Buy and Buy, based on recommendations from nine brokerage firms [2]. - Among the nine recommendations, six are classified as Strong Buy (66.7%) and two as Buy (22.2%) [2]. Limitations of Brokerage Recommendations - Sole reliance on brokerage recommendations may not be prudent, as studies indicate limited success in guiding investors towards stocks with the highest price increase potential [5]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][11]. Zacks Rank as an Alternative Indicator - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term stock price performance [8][12]. - The Zacks Rank is updated more frequently than the ABR, reflecting timely changes in earnings estimates and business trends [13]. Current Earnings Estimates for Rithm - The Zacks Consensus Estimate for Rithm has increased by 0.2% over the past month to $2.15, indicating growing optimism among analysts regarding the company's earnings prospects [14]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for Rithm, suggesting a favorable outlook for the stock [15].

Company Overview - Rithm Capital Corp. (RITM) is a mortgage-focused real estate investment trust (REIT) with significant investments in the mortgage servicing rights (MSR) market, along with complementary investments in mortgage origination and servicing [1] Investment Focus - The REIT provides full dividend coverage, indicating a strong commitment to returning value to shareholders [1] Market Insights - The article highlights the growing interest in artificial intelligence (AI) and its transformative impact on various industries, suggesting that the coming decade will present remarkable investment opportunities [1]

Core Points - KBRA has assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM6, a $494.4 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1][2] - The underlying pool consists of 985 residential mortgages with a weighted average original credit score of 753, a weighted average loan-to-value (LTV) of 70.8%, and a weighted average combined LTV (CLTV) of 70.9% [2] Summary by Sections Transaction Overview - The NRMLT 2025-NQM6 transaction is valued at $494.4 million and is backed by a pool of 985 residential mortgages [1][2] - The primary originators of the mortgages are Champions Funding, LLC (36.0%) and NewRez LLC (34.9%), with all loans serviced by NewRez LLC [1] Borrower Characteristics - Borrowers in the NRMLT 2025-NQM6 pool have a non-zero weighted average original credit score of 753 [2] - The loans exhibit a weighted average original LTV of 70.8% and a weighted average combined LTV of 70.9% [2] - Approximately 6.6% of the pool has an initial interest-only period [2] Rating Methodology - KBRA's rating approach involved a loan-level analysis using its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling, and reviews of key transaction parties [3]

Group 1 - The article discusses Rithm Capital Corp. (NYSE: RITM) and compares it with Annaly, suggesting that investors interested in mortgage REITs should consider holding Rithm [1] - The author, Sensor Unlimited, has a PhD in financial economics and has been covering the mortgage market, commercial market, and banking industry for a decade [1] - Sensor Unlimited contributes to the investing group Envision Early Retirement, which focuses on generating high income and growth through dynamic asset allocation [1] Group 2 - The article does not contain any disclosures regarding stock positions or plans to initiate positions in the mentioned companies [2] - It emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [3]

Core Viewpoint - The focus is on creating a portfolio that emphasizes growth and dividend income, aiming for an easy retirement through compounding dividend income and growth [1]. Group 1: Investment Strategy - The investment strategy is structured to generate monthly dividend income that grows through reinvestment and annual increases [1]. Group 2: Personal Position - The individual has a beneficial long position in the shares of RITM, indicating confidence in the stock's performance [1].

Core Insights - The article discusses Rithm Capital Corp.'s Series A 7.50% Preferred Stock (RITM.PR.A) and its previous 'Buy' rating, highlighting a partial redemption of the series [1] Company Overview - Rithm Capital Corp. has been actively involved in capital markets, with a focus on providing transparency and analytics through Binary Tree Analytics (BTA) [1] - BTA specializes in Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations, aiming for high annualized returns with low volatility [1] Investment Background - The investment team has over 20 years of experience in the finance sector, with a strong educational background in finance from a top university [1]