B. Riley Issues Negative Forecast for Ready Capital Earnings

Ready Capital Co. (NYSE:RC - Free Report) - Research analysts at B. Riley lowered their Q2 2025 earnings estimates for shares of Ready Capital in a report released on Thursday, May 15th. B. Riley analyst R. Binner now forecasts that the real estate investment trust will post earnings per share of $0.05 for the quarter, down from their prior 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.

Ready Capital (NYSE:RC - Get Free Report) last announced its earnings results 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 for the quarter, compared to analysts' expectations of $212.33 million. Ready Capital had a negative net margin of 11.65% and a positive return on equity of 7.53%.

A number of other research firms have also issued reports on RC. UBS Group dropped their price objective on shares of Ready Capital from $4.75 to $4.50 and set a "neutral" rating on the stock in a research note on Wednesday. Citizens Jmp downgraded Ready Capital from an "outperform" rating to a "market perform" rating in a report on Monday, March 3rd. 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 report on Tuesday, May 13th. Finally, Wedbush restated a "neutral" rating and set a $6.00 price target (down previously from $8.00) on shares of Ready Capital in a research report on Tuesday, March 4th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, Ready Capital has an average rating of "Hold" and an average target price of $6.96.

Ready Capital Stock Up 1.8%

Shares of NYSE:RC traded up $0.08 during mid-day trading on Monday, hitting $4.21. 2,205,588 shares of the company traded hands, compared to its average volume of 2,110,294. The firm has a market cap of $716.98 million, a P/E ratio of -6.01 and a beta of 1.45. The firm's 50 day simple moving average is $4.57 and its 200 day simple moving average is $6.01. Ready Capital has a 52-week low of $3.93 and a 52-week high of $9.54. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.67 and a current ratio of 1.67.

Ready Capital Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Monday, March 31st were given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 11.89%. The ex-dividend date was Monday, March 31st. Ready Capital's dividend payout ratio (DPR) is presently -28.74%.

Insider Transactions at Ready Capital

In related news, CEO Thomas E. Capasse purchased 10,000 shares of the company's stock in a transaction that occurred on Wednesday, March 5th. The shares were purchased at an average price of $4.80 per share, with a total value of $48,000.00. Following the purchase, the chief executive officer now owns 319,925 shares of the company's stock, valued at $1,535,640. This trade represents a 3.23% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Sterling Capital Management LLC grew its position in Ready Capital by 822.8% during the 4th quarter. Sterling Capital Management LLC now owns 5,177 shares of the real estate investment trust's stock worth $35,000 after purchasing an additional 4,616 shares in the last quarter. Larson Financial Group LLC purchased a new position in Ready Capital during the 1st quarter worth approximately $27,000. US Bancorp DE grew its holdings in shares of Ready Capital by 404.7% during the first quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 4,828 shares in the last quarter. Steward Partners Investment Advisory LLC grew its holdings in shares of Ready Capital by 3,075.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 6,350 shares of the real estate investment trust's stock valued at $43,000 after buying an additional 6,150 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Ready Capital during the first quarter valued at $32,000. 55.87% of the stock is owned by hedge funds and other institutional investors.

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.