NRZ - New Residential Investment Corp.

NYSE - NYSE Delayed Price. Currency in USD
16.50
-0.18 (-1.08%)
At close: 4:02PM EST
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Previous Close16.68
Open16.68
Bid16.48 x 3100
Ask16.56 x 4000
Day's Range16.43 - 16.74
52 Week Range13.63 - 17.34
Volume3,100,315
Avg. Volume3,510,566
Market Cap6.856B
Beta (5Y Monthly)1.02
PE Ratio (TTM)19.32
EPS (TTM)0.85
Earnings DateFeb 09, 2020 - Feb 13, 2020
Forward Dividend & Yield2.00 (11.99%)
Ex-Dividend DateDec 29, 2019
1y Target Est18.00
  • 3 Buy-Rated Mortgage REIT Stocks That Pay a 7% Dividend  Yield — Or More
    TipRanks

    3 Buy-Rated Mortgage REIT Stocks That Pay a 7% Dividend Yield — Or More

    Do you love dividends? Of course you do -- and rightly so!Scholars who study the stock market's historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500's total returns. Simply put, if you're not investing in dividend stocks, you're doing it wrong.And if you do love dividends, there's one sector in particular you should be focusing on: Real estate investment trusts, or REITs, pay out some of the most generous yields available to investors today, in many cases, several times more yield than the 2% average on the S&P 500.Knowing this, and having just been presented with a new stock report from investment bank B. Riley FBR, we've taken a good close look at the REITs highlighted therein -- and run them through our TipRanks Stock Screener tool to ensure that other analysts agree with B. Riley. Three of them make the grade, and here they are for your perusal.Ellington Financial (EFC)Starting at the top is Old Greenwich, Connecticut-based Ellington Financial. Ellington focuses its business on the acquisition of residential mortgage-backed securities (RMBS), which confer upon their holders the right to collect mortgage payments on residential mortgage loans, as well as the actual residential mortgage loans themselves, commercial MBS, and of course, commercial mortgage loans, too.Ellington Financial has a good track record of putting "capital to work at wider spreads while protecting book value, which has resulted in strong economic returns and dividend stability," says B. Riley's analyst Tim Hayes. In his opinion, this REIT is "one of the best positioned companies ... to take advantage of ebbs and flows in the MBS markets/potential volatility in 2020," and in particular, to take advantage of the Fed's recent uptick in buying mortgage-backed securities to inject money into the economy.2020, says Hayes, "could be a very strong year for EFC, especially given the potential for significant volatility surrounding the November election, GSE reform, and Fed policy." Indeed, Hayes posits earnings ahead of consensus this year ($1.87 per share), rising to $1.92 per share in 2021, and the analyst believes this warrants a higher price target of $19.50 on this buy-rated stock (5.5% above current pricing). Overall, Hayes says Ellington is one of this top two picks in this sector. (To watch Hayes' track record, click here)Other analysts are even more optimistic. Of the three investment banks that have rated Ellington over the past month, all three agree the stock is a "buy" -- and on average, they think it's worth $20 a share. 7% ahead of current pricing, that should combine with Ellington's 9.2% dividend yield to product returns in excess of 16%. (See Ellington stock analysis at TipRanks)New Residential Investment (NRZ)Hayes's second REIT of the day is New Residential Investment. A specialist in residential mortgage loans, this NYC-based mortgage REIT is both the biggest stock on today's list by a large margin (market cap -- $6.9 billion), and also the most generous dividend payer, with a shockingly large yield of 12.3%.It's also, alongside Ellington Financial, one of Hayes's top two picks in the sector, with a target price of $18.50 per share and a profit potential of 12.5% (before added the dividend. After the dividend, you could be looking at close to a 25% profit).Why is Hayes optimistic about this one? In the current low interest rate environment, says the analyst, with a strong economy and strong demand for housing, there's likely to be significant demand for new and refinanced loans, creating new business for New Residential's loan originating business, "New Rez." Rising expenses and weaker "asset yields," says the analyst, could weigh on earnings this year ($2.10 per share is his guess), but business could perk back up in 2021, and Hayes is forecasting profits per share of $2.14, justifying the analyst's buy rating.And Wall Street is broadly in agreement. Over the last couple of months, two other analysts have rated New Residential Investment Corp a buy, and only one a "hold." Their consensus, by the way, that the stock is worth $18.20, isn't that far off from Hayes's own. (See New Residential stock analysis at TipRanks)Jernigan Capital (JCAP)Last but not least, Jernigan Capital is a Memphis, Tennessee-based small-cap REIT that focuses on providing debt and equity capital to self-storage facility businesses in over 100 U.S. markets. In fact, according to the company, it is the only REIT in America that focuses its business entirely upon the self-storage sector. Which is, incidentally, a great place to do business, given Americans' affinity for collecting "stuff."In B. Riley's report, analyst Tim Hayes predicts that 2020 will be "a breakout year for JCAP" featuring multiple acquisitions driving "stronger NOI growth and NAV creation." For those not familiar with the terms, that refers to net operating income -- or profits -- and net asset value, which refers to the value of the assets the company controls.Hayes is predicting a $26 target price for Jernigan stock by the end of this year, which is 38.5% above where the stock trades today.Though, Hayes notes that his predictions of $1.22 per share in adjusted earnings per share in 2020, and $0.88 per share in 2021, are both below consensus estimates. Conceivably, if Jernigan earns more than Hayes predicts, the stock could be worth even more. Indeed, with a 7.1% dividend yield, it's almost certain to deliver more in terms of total return.Jernigan has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent ratings. With shares trading at $18.90, the $23 average price target suggests room for a 22% upside. (See Jernigan stock analysis at TipRanks)

  • Business Wire

    KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2020-NQM1 (NRMLT 2020-NQM1)

    Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from NRMLT 2020-NQM1, a $278.5 million non-prime RMBS transaction.

  • Fort Washington mortgage company to lay off 101, wind down operations
    American City Business Journals

    Fort Washington mortgage company to lay off 101, wind down operations

    Fort Washington-based mortgage loan servicer and originator Ditech Financial will lay off 101 workers over the next year or so while winding down its remaining operations, a move that comes after selling its two main subsidiaries as a result of its bankruptcy filing last year. In a WARN notice filed with the Pennsylvania Department of Labor and Industry, the company said it was ceasing operations at its headquarters at 1100 Virginia Drive in Fort Washington. Parent company Ditech Holding Corp. filed for bankruptcy last year for the second time in 14 months after years of financial losses for the company formerly known as Walter Investment Management.

  • Bloomberg

    WeWork’s Adam Neumann in Talks to Boost Investment in Peach Street

    (Bloomberg) -- WeWork co-founder Adam Neumann’s family office is in discussions to put additional capital in Peach Street Inc., a startup focused on mortgage servicing.Neumann’s 166 2nd LLC is among a group of investors in talks to take part of a $4 million convertible note, said Ilan Stern, the family office’s chief investment officer. New York-based Peach Street is headed by Chief Executive Officer Andrew Wang.“Andrew is a friend who worked for me for many years and is a world-class investor, operator and person,” said Stern, who previously worked for Soros Fund Management. “We are looking forward to supporting them as they grow.”Jefferies Financial Group Inc. is also in talks to own part of the convertible note, said people with knowledge of the matter, who asked not to be identified because the discussions are private. Representatives for Peach Street and Jefferies declined to comment.Three FriendsPeach Street was founded by three friends: Wang, Eric Chiang and Jon Hsu, and named after the street Chiang grew up on in Atlanta, according to its website. The company, which hasn’t yet launched, will enable mortgage holders to make payments and access information on a secure digital platform.Neumann’s family office was an investor in Peach Street’s $3.2 million seed capital round in July, as was Jefferies, Kairos, Zigg Capital, Soros and serial entrepreneur Kevin Ryan’s AlleyCorp. A Soros representative declined to comment.“Peach Street has the opportunity to take one of the largest and most antiquated sectors in housing and build a product for consumers,” Kairos’s Ankur Jain, the former head of product for Tinder Inc., said in a phone interview.New Residential Investment Corp., an affiliate of Fortress Investment Group LLC, also participated in the seed round. Fortress’s Michael Nierenberg, who is New Residential’s CEO, said the firm made a small investment in Peach Street, which it believes can develop better technology for the mortgage-servicing industry.WeWork IPONeumann, 40, stepped down as WeWork’s chairman and CEO last year after the office-sharing company’s attempt at a public listing floundered, leaving it little choice but to accept a bailout from Japan’s SoftBank. The rescue included the payment of a $185 million consultation fee to Neumann, among other things.Neumann has backed startups including accomodation and co-working provider Selina, do-it-yourself online platform Hometalk and EquityBee, which connects employees in early-stage companies with investors.\--With assistance from Katia Porzecanski.To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.netTo contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Steven Crabill, Peter EichenbaumFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • New Residential Investment (NYSE:NRZ) Shareholders Booked A 28% Gain In The Last Five Years
    Simply Wall St.

    New Residential Investment (NYSE:NRZ) Shareholders Booked A 28% Gain In The Last Five Years

    If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to...

  • Business Wire

    NewRez and Shelter Mortgage Announce Formation of New Joint Venture Lender, Legacy Home Mortgage

    NewRez LLC ("NewRez"), a national mortgage lender, announced today the formation of a new joint venture mortgage company to be added to its network of partners. NewRez and Shelter Mortgage Company, L.L.C. ("Shelter Mortgage"), the NewRez business division focused on JV lending, have partnered in this venture with Atlanta Fine Homes Sotheby’s International Realty, the exclusive Sotheby’s International Realty® affiliate in Metro Atlanta with a servant-first commitment to providing a differentiated experience for buyers and sellers throughout Metro Atlanta and beyond. The new joint venture lender, to be named Legacy Home Mortgage, will be led by mortgage lending industry veteran Glenda Snyder.

  • Business Wire

    NewRez and Shelter Mortgage Announce Launch of New Joint Venture Lender, Your Home Financial

    NewRez LLC ("NewRez"), a national mortgage lender, announced today the official launch of one of the latest Joint Venture mortgage companies to join its network of partners. NewRez and Shelter Mortgage Company, L.L.C. ("Shelter Mortgage"), the NewRez business division focused on JV lending, have partnered in this venture with Russell Real Estate Services, a long-standing family-run business serving the greater Cleveland, OH area. The new Joint Venture lender, Your Home Financial ("Your Home Financial"), is now fully operational under its independent name with a team of seven loan officers led by President Paul McKelvey.

  • Business Wire

    New Residential Investment Corp. Declares Fourth Quarter 2019 Common and Preferred Stock Dividends

    New Residential Investment Corp. Declares Fourth Quarter 2019 Common and Preferred Stock Dividends

  • Is New Residential Investment Corp (NRZ) A Good Stock To Buy ?
    Insider Monkey

    Is New Residential Investment Corp (NRZ) A Good Stock To Buy ?

    "The global economic environment is very favorable for investors. Economies are generally strong, but not too strong. Employment levels are among the strongest for many decades. Interest rates are paused at very low levels, and the risk of significant increases in the medium term seems low. Financing for transactions is freely available to good borrowers, […]

  • New Strong Sell Stocks for November 21st
    Zacks

    New Strong Sell Stocks for November 21st

    Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today

  • Business Wire

    NewRez and Shelter Mortgage Announce Formation of New Joint Venture Lender, Landed Home Loans

    Mortgage lender’s latest partnership helps educators, healthcare workers, first responders afford homes in the communities they serve

  • The Independent Director of New Residential Investment Corp. (NYSE:NRZ), Robert McGinnis, Just Bought 7.9% More Shares
    Simply Wall St.

    The Independent Director of New Residential Investment Corp. (NYSE:NRZ), Robert McGinnis, Just Bought 7.9% More Shares

    Whilst it may not be a huge deal, we thought it was good to see that the New Residential Investment Corp. (NYSE:NRZ...

  • Thomson Reuters StreetEvents

    Edited Transcript of NRZ earnings conference call or presentation 25-Oct-19 12:00pm GMT

    Q3 2019 New Residential Investment Corp Earnings Call

  • New Residential Investment (NRZ) Lags Q3 Earnings and Revenue Estimates
    Zacks

    New Residential Investment (NRZ) Lags Q3 Earnings and Revenue Estimates

    New Residential Investment (NRZ) delivered earnings and revenue surprises of -1.96% and -11.00%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?

  • Business Wire

    New Residential Investment Corp. Announces Third Quarter 2019 Results

    New Residential Investment Corp. today reported the following information for the third quarter ended September 30, 2019:

  • What's in the Cards for New Residential's (NRZ) Q3 Earnings?
    Zacks

    What's in the Cards for New Residential's (NRZ) Q3 Earnings?

    While New Residential's (NRZ) Q3 results will likely reflect benefits of strong originations and refinancing, credit risks related to residential mortgage loans might have made its earnings volatile.

  • Business Wire

    New Residential Investment Corp. Schedules Third Quarter 2019 Earnings Release and Conference Call

    New Residential Investment Corp. (NYSE:NRZ, “New Residential” or the “Company”), a leading provider of capital and services to the mortgage and financial services industries, announced today that it will release its third quarter financial results for the period ended September 30, 2019 on Friday, October 25, 2019 prior to the opening of the New York Stock Exchange. In addition, management will host a conference call on Friday, October 25, 2019 at 8:00 A.M. Eastern Time.

  • Earnings Preview: New Residential Investment (NRZ) Q3 Earnings Expected to Decline
    Zacks

    Earnings Preview: New Residential Investment (NRZ) Q3 Earnings Expected to Decline

    New Residential Investment (NRZ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • New Residential Investment (NRZ) Gains But Lags Market: What You Should Know
    Zacks

    New Residential Investment (NRZ) Gains But Lags Market: What You Should Know

    New Residential Investment (NRZ) closed at $15.44 in the latest trading session, marking a +0.72% move from the prior day.

  • 3 ‘Strong Buy’ Stocks with Over 10% Dividend Yield
    TipRanks

    3 ‘Strong Buy’ Stocks with Over 10% Dividend Yield

    The markets are volatile these last few months, with S&P 500 seeming unable to hold onto its gains, slipping 3.5% from its July 26 peak of 3,025 and swinging 100 points or more four times since the beginning of August. The rapid-fire shifts have investors yearning for stability – after all, investing is about making a profit, and profits are more likely in a stable, upward-trending environment.Fortunately, some stocks are prepped to deliver profits whether the markets go up or down. Dividends represent income for shareholders, paid out regardless of general market conditions, and there are plenty of stocks out there which pay out handsomely.We’ve used TipRanks’ Stock Screener to search the market for Strong Buy-rated investments with reliable high-yield dividend payouts – and a low cost of entry. With these attributes, a profit-minded investor will have to look twice.New Residential Investment (NRZ)Our first stock to look at, and the one with the highest-yielding dividend, is a real estate investment trust – a company that owns various properties and uses them to generate income. Under US tax law, these companies are heavily incentivized to pay out 90% or more of their income in the form of dividends. This makes the REIT a go-to stock sector for profit-oriented investors.Based in New York, New Residential operates across the real estate industry, with portfolio holding in mortgage servicing, real estate securities, residential and commercial loans, and corporate properties. The company’s holdings total over $600 billion in value, and generate more than $960 million in net income from $2.37 billion in annual revenues.The recent interest rate reductions by the Federal Reserve have impacted NRZ’s bottom line, as the company is heavily invested in the mortgage sector. However, like most REITs, New Residential has a high cash flow and can easily maintain its dividend payment. At $0.50 per quarter, that payment may look small – but the stock is priced at just $14.98, making the annual dividend yield a robust 13.35%. For comparison, the average stock on the S&P 500 yields a 2% dividend.NRZ’s profit potential has drawn positive attention from Wall Street’s analysts. Initiating coverage of the stock with a Buy rating, BTIG’s Giuliano Bologna wrote, “…we believe investors should focus on NRZ’s unique portfolio of assets, the buildout of recapture capabilities and ancillary services that should improve the overall return…” Referring to the company’s dividend and cash flow, he added, “We believe NRZ has sufficient cash flow to maintain the company’s quarterly dividend of $0.50 and will benefit from additional cash flow contribution from call rights and the securitization/sale of originated loans during 2H19.” In line with his bullish outlook, Bologna set an $18 price target on the stock, indicating confidence in a 20% upside. (To watch Bologna's track record, click here)Furthermore, Piper Jaffray’s 5-star analyst Kevin Barker also gave this stock a Buy rating. He said in his note, “…slight pressure to New Residential's tangible book value in Q3 is more than priced into the shares. Further, recent acquisitions are further evidence New Residential will continue to build out an operating company that will attempt to squeeze out revenue from all touch points on its large portfolio.”Overall, New Residential has a Strong Buy rating from the analyst consensus. This is derived from 4 buys assigned in the last two months – so the consensus is unanimous. As indicated above, the stock sells for $14.98. The average price target is $18, which implies room for 20% upside growth. (See NRZ stock analysis on TipRanks)Two Harbors Investment (TWO)Two Harbors, like NRZ above, is a real estate investment trust. TWO manages the natural risk of the real estate market by diversifying its portfolio – the company is considered a hybrid REIT, meaning it holds both properties and mortgages among its assets. This strategy mitigates risk for the company while bringing the benefits of two separate income streams.The success of Two Harbors’ hybrid strategy can be seen in the company’s results. It reported $201 million net income in the last quarter. Two Harbors CEO Thomas Siering said, “Our strong return on book value was driven by our acute focus on portfolio positioning and hedging. Additionally, improvements in financing continue to present a long-term opportunity for our business…”Along with its solid income, TWO continued to pay out its regular dividend. At $1.60 annualized, the quarterly payment is 40 cents – but that comes from a share price of $13.31, making the yield 12.02%, or six times the S&P average. Two Harbors has been raising its dividend steadily over the past two year, and the payout ratio – which compares the annualized dividend to the annual EPS – is an impressive 84.7%.All of this has brought RBC Capital analyst Kenneth Lee to reiterate his Buy rating on this stock. Publishing his comments on October 2, Lee said, “Two Harbors [has] less rate sensitivity due to differentiated agency MBS/MSR pairing strategy along with a unique, legacy credit-oriented portfolio. Given the current macro backdrop and our preference for credit-oriented REITs, we are initiating coverage with an Outperform rating…” Lee gives TWO a $15 price target, implying an upside potential of 12%. (To watch Lee's track record, click here)Lee is not the only analyst impressed by Two Harbors. The company’s Strong Buy consensus rating comes from 3 "buy" and "1" hold give in the last three months. And at $14.75, the average price target suggests an upside of 10% over the $13.31 current share price. (See Two Harbors stock analysis on TipRanks)Falcon Minerals (FLMN)With our third high-yield dividend stock, we are leaving the real estate market and entering the energy industry. Falcon Minerals is a small-cap oil & gas company operating in the Eagle Ford Shale of south Texas. While overshadowed by the Permian Basin, also in Texas, the Eagle Ford Shale is known to be an oil-rich and gas-rich formation. A study sponsored by University of Texas San Antonio indicates that the formation may support as many as 5,000 new wells by 2020, which will bring up to 68,000 jobs to the region and have a potential $21 billion impact on the regional economy. And Falcon owns mineral rights in the core of the formation.In addition to owning mineral rights, Falcon also has active wells drilling in the area. We can note here that, at over 11 million barrels per day, the US is now the world’s largest crude oil producer. Texas is the largest oil-producing state, putting Falcon in the epicenter of the world’s oil markets.They don’t call oil ‘black gold’ for nothing. Falcon reported a $13.4 million free cash flow in the second quarter, and a net income of $8.9 million. It was more than enough to support the 15-cent quarterly dividend – which translated to a yield of 10.95% annualized. Even better, Falcon has 107 wells drilled and waiting on completion. In the Q2, the company averaged 9 active wells; with 12 times as many waiting in the wings, the company’s income outlook is impressive.Building on this background, analyst Jeff Grampp of Northland gives FLMN a Buy rating, saying, “The long-term outlook is positive with activity levels trending up, smaller acquisitions continuing at a healthy clip and Hooks Ranch wells now being drilled… Activity levels on FLMN's acreage are trending higher. 11 rigs are currently operating on FLMN acreage, up from the nine rig average in 2Q19 and five rigs rig average in 1Q19.” Grampp puts a $7.50 price target on this stock, implying a strong upside of 36%.Falcon has an overall analyst consensus of Strong Buy, based on 3 buys and 1 hold set in the last three months. The stock is a bargain price, at $5.48, as the $8.38 average target suggests an impressive potential upside of 52%. (See Falcon Minerals stock analysis on TipRanks)

  • Business Wire

    NewRez and Shelter Mortgage Announce Formation of New Joint Venture, Homeowners First Mortgage

    NewRez LLC (“NewRez”), a national mortgage lender, announced today the formation of a new joint venture mortgage company to be added to its network of partners. NewRez and Shelter Mortgage Company, LLC (“Shelter Mortgage”), the NewRez business division focused on JV lending, have partnered in this venture with First Team Real Estate (“First Team”), the proven unit sales leader in Southern California, founded in 1976.

  • Benzinga

    8 REITs With 10% Yields

    Real estate investment trusts offer some of the highest yields in the market. Maybe the best part about these investments is that they're legally required to distribute at least 90% of their earnings to ...

  • New Residential Investment (NRZ) Gains As Market Dips: What You Should Know
    Zacks

    New Residential Investment (NRZ) Gains As Market Dips: What You Should Know

    New Residential Investment (NRZ) closed the most recent trading day at $14.91, moving +1.02% from the previous trading session.