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Rithm Capital Corp. (RITM) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Real Estate · REIT - Mortgage

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $9.05 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3); Sector modifier (Real Estate): -1.2.

Rithm Capital is a global asset manager and REIT operating Newrez (top-5 U.S. mortgage originator and servicer with $2.1T portfolio UPB), Sculptor Capital Management, residential transitional lending (Genesis), and Class A office properties acquired via the December 2025... Read more

$9.05+30.4% A.UpsideScore 6.7/10#1 of 17 REIT - Mortgage
QualityF-score4 / 9FCF yield
IncomeYield10.95%(5y avg 9.36%)Payout91.74%
Stop $8.66Target $11.74(analyst − 13%)A.R:R 6.1:1
Analyst target$13.50+49.2%9 analysts
$11.74our TP
$9.05price
$13.50mean
$16

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $9.05 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3); Sector modifier (Real Estate): -1.2. Chart setup: Death cross, below all MAs, RSI 28, MACD bearish. Score 6.7/10, moderate confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 69d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Recent Developments — Rithm Capital Corp.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Strong growth profile
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3)
Sector modifier (Real Estate): -1.2
Negative momentum

Key Metrics

P/E (TTM)8.4
P/E (Fwd)3.9
Mkt Cap$5.1B
EV/EBITDA
Profit Mgn17.0%
ROE8.5%
Rev Growth64.6%
Beta1.16
Dividend10.95%
Rating analysts17

Quality Signals

Piotroski F4/9MoatNarrow

Options Flow

P/C0.71neutral
IV49%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMloan_portfolioCalifornia (Genesis RTLs)37%
    10-K Item 1A: '36.8% of Genesis RTLs with a total UPB of approximately $1.3 billion were secured by properties located in California'
  • MEDIUMloan_portfolioCalifornia (MSRs and Excess MSRs)17%
    10-K Item 1A: '16.5% of the total UPB of the residential mortgage loans underlying our Excess MSRs and MSRs ... were secured by properties located in California'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·2 ceiling hits

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Ma Position
1.0
Macd
2.0
Rsi
3.0
Volume
3.8
Capitulation risk (RSI 28, below 200MA)Volume distribution (falling OBV)Below 200-MA, MA slope -1.6%/30d — confirmed downtrend
GatesMomentum 2.2<4.5Death cross (50MA < 200MA)A.R:R 6.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 69d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
28 · Oversold
20D MA 50D MA 200D MADEATH CROSSSupport $8.93Resistance $10.27

Price Targets

$9
$12
A.Upside+29.7%
A.R:R6.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 2.2/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-28 (69d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is RITM stock a buy right now?

Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $9.05 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3); Sector modifier (Real Estate): -1.2. Chart setup: Death cross, below all MAs, RSI 28, MACD bearish. Prior stop was $8.66. Score 6.7/10, moderate confidence.

What is the RITM stock price target?

Take-profit target: $11.74 (+30.4% upside). Prior stop was $8.66. Stop-loss: $8.66.

What are the risks of investing in RITM?

V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3); Sector modifier (Real Estate): -1.2; Negative momentum.

Is RITM overvalued or undervalued?

Rithm Capital Corp. trades at a P/E of 8.4 (forward 3.9). TrendMatrix value score: 9.2/10. Verdict: Sell.

What do analysts say about RITM?

17 analysts cover RITM with a consensus score of 4.3/5. Average price target: $14.

What does Rithm Capital Corp. do?Rithm Capital is a global asset manager and REIT operating Newrez (top-5 U.S. mortgage originator and servicer with...

Rithm Capital is a global asset manager and REIT operating Newrez (top-5 U.S. mortgage originator and servicer with $2.1T portfolio UPB), Sculptor Capital Management, residential transitional lending (Genesis), and Class A office properties acquired via the December 2025 Paramount acquisition.

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