Ready Capital (NYSE:RC) Reaches New 1-Year Low – What’s Next?

Ready Capital Co. (NYSE:RC)’s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $6.71 and last traded at $6.76, with a volume of 167197 shares changing hands. The stock had previously closed at $6.75.

Analysts Set New Price Targets

A number of research firms have recently commented on RC. BTIG Research assumed coverage on shares of Ready Capital in a report on Friday, July 19th. They set a “neutral” rating for the company. Keefe, Bruyette & Woods cut their price target on shares of Ready Capital from $8.00 to $7.75 and set an “underperform” rating for the company in a research note on Monday, August 12th. Wedbush reiterated a “neutral” rating and issued a $9.00 price objective on shares of Ready Capital in a research note on Monday, August 12th. Finally, Piper Sandler dropped their target price on Ready Capital from $9.50 to $8.00 and set a “neutral” rating for the company in a report on Monday, September 16th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, Ready Capital currently has an average rating of “Hold” and a consensus target price of $9.38.

Ready Capital Stock Up 0.3 %

The firm has a fifty day moving average price of $7.57 and a 200 day moving average price of $8.25. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $1.14 billion, a price-to-earnings ratio of -17.76 and a beta of 1.42.

Ready Capital (NYSE:RC) last announced its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.07 earnings per share for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.19). The business had revenue of $234.12 million during the quarter, compared to analyst estimates of $61.77 million. Ready Capital had a negative net margin of 5.67% and a positive return on equity of 7.32%. During the same quarter last year, the business posted $0.35 earnings per share. Sell-side analysts anticipate that Ready Capital Co. will post 0.98 EPS for the current fiscal year.

Ready Capital Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 31st. Shareholders of record on Monday, September 30th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.77%. The ex-dividend date was Monday, September 30th. Ready Capital’s dividend payout ratio is presently -263.16%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in Ready Capital by 7.1% during the 4th quarter. Vanguard Group Inc. now owns 11,163,763 shares of the real estate investment trust’s stock valued at $114,429,000 after purchasing an additional 735,949 shares during the period. Norden Group LLC lifted its holdings in Ready Capital by 24.7% in the first quarter. Norden Group LLC now owns 18,309 shares of the real estate investment trust’s stock valued at $167,000 after buying an additional 3,630 shares during the period. Janney Montgomery Scott LLC bought a new position in Ready Capital in the first quarter valued at approximately $307,000. Jennison Associates LLC grew its holdings in Ready Capital by 92.2% during the 1st quarter. Jennison Associates LLC now owns 108,946 shares of the real estate investment trust’s stock worth $995,000 after acquiring an additional 52,274 shares during the period. Finally, Texas Permanent School Fund Corp raised its position in shares of Ready Capital by 1.3% during the 1st quarter. Texas Permanent School Fund Corp now owns 138,085 shares of the real estate investment trust’s stock valued at $1,261,000 after acquiring an additional 1,718 shares during the last quarter. Institutional investors and hedge funds own 55.87% of the company’s stock.

Ready Capital Company Profile

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments.