B. Riley Brokers Lower Earnings Estimates for Ready Capital

Ready Capital Co. (NYSE:RC - Free Report) - Investment analysts at B. Riley cut their Q2 2025 earnings per share estimates for Ready Capital in a research report issued on Thursday, May 15th. B. Riley analyst R. Binner now expects that the real estate investment trust will post earnings of $0.05 per share for the quarter, down from their previous estimate of $0.16. The consensus estimate for Ready Capital's current full-year earnings is $0.93 per share. B. Riley also issued estimates for Ready Capital's Q3 2025 earnings at $0.10 EPS, Q4 2025 earnings at $0.14 EPS, FY2025 earnings at $0.20 EPS and FY2026 earnings at $0.50 EPS.

A number of other research firms have also weighed in on RC. Citizens Jmp lowered shares of Ready Capital from an "outperform" rating to a "market perform" rating in a report on Monday, March 3rd. UBS Group cut their price target on Ready Capital from $5.00 to $4.75 and set a "neutral" rating on the stock in a report on Wednesday, April 16th. Keefe, Bruyette & Woods lowered their price objective on shares of Ready Capital from $4.00 to $3.75 and set an "underperform" rating for the company in a research note on Tuesday, May 13th. Finally, Wedbush reiterated a "neutral" rating and set a $6.00 target price (down previously from $8.00) on shares of Ready Capital in a research report on Tuesday, March 4th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $7.00.

Ready Capital Price Performance

RC stock traded down $0.05 during midday trading on Monday, reaching $4.40. 1,844,915 shares of the stock were exchanged, compared to its average volume of 2,092,899. Ready Capital has a 52 week low of $3.93 and a 52 week high of $9.54. The company has a fifty day moving average price of $4.62 and a 200 day moving average price of $6.06. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.67 and a quick ratio of 1.67. The stock has a market capitalization of $750.23 million, a PE ratio of -6.29 and a beta of 1.45.

Ready Capital (NYSE:RC - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The real estate investment trust reported ($0.09) EPS for the quarter, missing the consensus estimate of $0.12 by ($0.21). The company had revenue of $40.24 million during the quarter, compared to the consensus estimate of $212.33 million. Ready Capital had a negative net margin of 11.65% and a positive return on equity of 7.53%.

Institutional Trading of Ready Capital

Several hedge funds have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. raised its holdings in shares of Ready Capital by 21.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,266,585 shares of the real estate investment trust's stock worth $15,458,000 after purchasing an additional 398,005 shares during the period. Barclays PLC increased its position in Ready Capital by 205.9% in the third quarter. Barclays PLC now owns 484,986 shares of the real estate investment trust's stock worth $3,699,000 after buying an additional 326,467 shares during the last quarter. Vanguard Group Inc. increased its position in Ready Capital by 7.3% in the fourth quarter. Vanguard Group Inc. now owns 11,366,828 shares of the real estate investment trust's stock worth $77,522,000 after buying an additional 768,891 shares during the last quarter. GraniteShares Advisors LLC bought a new stake in shares of Ready Capital in the fourth quarter valued at $2,480,000. Finally, JPMorgan Chase & Co. lifted its position in shares of Ready Capital by 50.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 336,773 shares of the real estate investment trust's stock valued at $2,570,000 after buying an additional 112,934 shares during the last quarter. Institutional investors own 55.87% of the company's stock.

Insiders Place Their Bets

In related news, insider Adam Zausmer purchased 10,000 shares of the business's stock in a transaction that occurred on Friday, March 7th. The shares were bought at an average cost of $5.42 per share, with a total value of $54,200.00. Following the acquisition, the insider now owns 301,105 shares of the company's stock, valued at $1,631,989.10. This represents a 3.44% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 1.10% of the company's stock.

Ready Capital Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Monday, March 31st were given a dividend of $0.125 per share. The ex-dividend date of this dividend was Monday, March 31st. This represents a $0.50 annualized dividend and a dividend yield of 11.36%. Ready Capital's dividend payout ratio is currently -28.74%.

About Ready Capital

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.