50% off Premium Yearly
Rithm Capital CorpRITMHOLDOct 05, 2026Stock price when the opinion was issued
As of Oct 08, 2026. Market Open.
They are converting from a REIT into a diversified asset management business, like Blackstone. Cheap at 4x PE and pays an 11% dividend with 200% coverage. At 30% discount to book value. When they convert the PE should reach 8-9x. Shares will double in 1-2 years. Great balance sheet.
(Analysts’ price target is $13.44)
Hit so badly because of interest rates. Mortgage rates in the US have gone up a huge amount. As rates rise, their existing paper goes down in value. Their spread is actually quite good. Book value should still hold in above $12.50.
Nothing wrong with the business. Cashflow should still be quite robust, and should still continue paying the very good dividend of 11%.