Ready Capital (NYSE:RC) Given New $1.25 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Ready Capital’s price target from $1.40 to $1.25 and maintained an “underperform” rating, implying 2.72% downside from the stock’s $1.28 price.
• Analyst sentiment remains weak: Ready Capital has a consensus “Reduce” rating and an average target price of $1.50, with three Hold ratings and two Sell ratings.
• The REIT reported a quarterly loss of $0.47 per share, slightly better than estimates, but continues to show negative profitability metrics, including a 131.76% net margin and a 16.78% negative return on equity.

Ready Capital (NYSE:RC - Get Free Report) had its target price lowered by research analysts at Keefe, Bruyette & Woods from $1.40 to $1.25 in a note issued to investors on Friday, Benzinga reports. The firm currently has an "underperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price would indicate a potential downside of 2.72% from the company's current price.

A number of other equities analysts have also commented on the stock. Piper Sandler reduced their price target on shares of Ready Capital from $2.00 to $1.25 and set a "neutral" rating on the stock in a research report on Friday. Zacks Research upgraded Ready Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. UBS Group reduced their price objective on shares of Ready Capital from $2.50 to $2.00 and set a "neutral" rating on the stock in a research note on Thursday, July 16th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Ready Capital in a research report on Friday, August 28th. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Ready Capital currently has a consensus rating of "Reduce" and an average target price of $1.50.

Ready Capital Price Performance

Shares of Ready Capital stock traded down $0.04 during trading on Friday, hitting $1.28. 813,266 shares of the company's stock traded hands, compared to its average volume of 1,865,482. The company has a market cap of $212.27 million, a PE ratio of -0.37 and a beta of 1.55. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.91 and a quick ratio of 1.91. Ready Capital has a twelve month low of $1.07 and a twelve month high of $3.52. The firm's fifty day moving average price is $1.61 and its 200 day moving average price is $1.67.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported ($0.47) earnings per share for the quarter, beating the consensus estimate of ($0.48) by $0.01. The company had revenue of $151.87 million for the quarter, compared to analyst estimates of $16.41 million. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%. Analysts forecast that Ready Capital will post -0.99 earnings per share for the current year.

Institutional Investors Weigh In On Ready Capital

A number of institutional investors and hedge funds have recently made changes to their positions in RC. HB Wealth Management LLC lifted its stake in Ready Capital by 44.2% in the second quarter. HB Wealth Management LLC now owns 18,951 shares of the real estate investment trust's stock valued at $33,000 after acquiring an additional 5,812 shares during the last quarter. OceanIQ Capital LLC acquired a new stake in Ready Capital during the second quarter worth approximately $109,000. Private Management Group Inc. boosted its stake in Ready Capital by 9.5% in the 2nd quarter. Private Management Group Inc. now owns 7,932,521 shares of the real estate investment trust's stock valued at $13,882,000 after purchasing an additional 689,928 shares during the period. Beacon Pointe Advisors LLC bought a new stake in shares of Ready Capital in the second quarter valued at about $41,000. Finally, Public Employees Retirement System of Ohio bought a new stake in Ready Capital in the 2nd quarter valued at about $28,000. Institutional investors own 55.87% of the company's stock.

About Ready Capital

Ready Capital Corporation NYSE: RC is a real estate finance company organized as a real estate investment trust (REIT). The company focuses on originating, acquiring, financing and servicing loans secured by commercial real estate, primarily in the United States.

Ready Capital provides financing for a range of property types and transactions, including bridge loans, construction loans, mortgage loans and other forms of debt financing. Its portfolio has included loans backed by multifamily, residential, small-balance commercial and other income-producing properties.

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