Piper Sandler Issues Pessimistic Forecast for Ready Capital (NYSE:RC) Stock Price

Key Points

• Piper Sandler cut its Ready Capital price target from $1.25 to $1.00 and maintained a neutral rating, implying about 1.6% downside from the prior close.
• Analyst sentiment is broadly negative: MarketBeat reports a consensus “Reduce” rating and an average price target of $1.42, with three Hold ratings and two Sell ratings.
• Ready Capital missed quarterly earnings expectations, reporting a loss of $0.53 per share versus the $0.42 loss analysts expected, despite revenue exceeding forecasts.

Ready Capital (NYSE:RC - Get Free Report) had its price objective reduced by analysts at Piper Sandler from $1.25 to $1.00 in a research note issued on Monday, Benzinga reports. The firm presently has a "neutral" rating on the real estate investment trust's stock. Piper Sandler's target price would indicate a potential downside of 1.57% from the stock's previous close.

A number of other equities analysts also recently weighed in on the stock. UBS Group dropped their target price on shares of Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a research note on Thursday, July 16th. Keefe, Bruyette & Woods decreased their price target on shares of Ready Capital from $1.40 to $1.25 and set an "underperform" rating for the company in a research note on Friday, October 9th. Zacks Research upgraded shares of Ready Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Ready Capital in a report on Friday, August 28th. Three analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $1.42.

Ready Capital Stock Performance

NYSE RC traded up $0.16 during midday trading on Monday, hitting $1.02. The company had a trading volume of 5,140,511 shares, compared to its average volume of 1,895,507. The stock has a market cap of $167.83 million, a price-to-earnings ratio of -0.28 and a beta of 1.55. The company has a quick ratio of 1.91, a current ratio of 1.88 and a debt-to-equity ratio of 0.89. Ready Capital has a fifty-two week low of $0.83 and a fifty-two week high of $2.98. The firm has a fifty day simple moving average of $1.34 and a two-hundred day simple moving average of $1.66.

Ready Capital (NYSE:RC - Get Free Report) last issued its earnings results on Thursday, November 5th. The real estate investment trust reported ($0.53) EPS for the quarter, missing analysts' consensus estimates of ($0.42) by ($0.11). The firm had revenue of $25.33 million during the quarter, compared to analyst estimates of $23.10 million. Ready Capital had a negative net margin of 163.95% and a negative return on equity of 9.25%. Equities analysts forecast that Ready Capital will post -1.00 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ready Capital

A number of institutional investors have recently modified their holdings of RC. BlackRock Inc. bought a new stake in shares of Ready Capital in the 2nd quarter valued at $31,059,000. Private Management Group Inc. raised its holdings in shares of Ready Capital by 3.0% in the 3rd quarter. Private Management Group Inc. now owns 8,168,443 shares of the real estate investment trust's stock worth $9,475,000 after purchasing an additional 235,922 shares during the period. GSA Capital Partners LLP purchased a new stake in Ready Capital during the second quarter valued at about $856,000. Bank of New York Mellon Corp purchased a new position in shares of Ready Capital in the second quarter valued at $845,000. Finally, Ieq Capital LLC purchased a new position in Ready Capital during the second quarter valued at approximately $817,000. 55.87% of the stock is owned by institutional investors.

Ready Capital Company Profile

Ready Capital Corporation NYSE: RC is a real estate finance company that operates as a mortgage real estate investment trust. The company provides financing to owners, operators and developers of commercial real estate, with a focus on small- to mid-sized properties and borrowers that may not be served by traditional banks.

Ready Capital originates, acquires, finances and services a range of commercial real estate loans. Its offerings have included bridge loans, construction loans, loans secured by transitional properties, multifamily financing and small business administration (SBA) loans.

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