Ready Capital Corp (NYSE:RC) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Ready Capital has a consensus “Reduce” rating from five brokerages: two recommend selling and three recommend holding. The average 12-month price target is $2.17, while UBS recently lowered its target to $2.00.
• Institutional investors own 55.87% of the company, with BlackRock initiating a position worth about $31.1 million and several other firms increasing their stakes.
• Shares opened at $1.66, near the lower end of their 52-week range of $1.39 to $4.42. Although quarterly EPS slightly beat estimates, Ready Capital reported a negative return on equity of 16.78% and a negative net margin of 131.76%.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the five brokerages that are presently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell rating and three have given a hold rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $2.1667.

RC has been the subject of a number of analyst reports. UBS Group reduced their price objective on Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a research report on Thursday, July 16th. Zacks Research raised Ready Capital from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Ready Capital in a research report on Friday, August 28th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RC. BlackRock Inc. bought a new position in Ready Capital in the 2nd quarter worth approximately $31,059,000. Private Management Group Inc. raised its stake in Ready Capital by 197.0% during the 4th quarter. Private Management Group Inc. now owns 4,806,088 shares of the real estate investment trust's stock valued at $10,477,000 after acquiring an additional 3,188,135 shares in the last quarter. UBS Group AG boosted its position in Ready Capital by 161.4% during the 4th quarter. UBS Group AG now owns 3,155,403 shares of the real estate investment trust's stock worth $6,879,000 after acquiring an additional 1,948,208 shares during the period. Marshall Wace LLP acquired a new position in Ready Capital during the 2nd quarter worth $6,542,000. Finally, Invesco Ltd. raised its position in shares of Ready Capital by 21.2% during the 3rd quarter. Invesco Ltd. now owns 4,239,678 shares of the real estate investment trust's stock worth $16,408,000 after buying an additional 742,226 shares in the last quarter. Institutional investors own 55.87% of the company's stock.

Ready Capital Price Performance

RC opened at $1.66 on Monday. The firm has a market cap of $273.39 million, a price-to-earnings ratio of -0.48 and a beta of 1.48. Ready Capital has a fifty-two week low of $1.39 and a fifty-two week high of $4.42. The company's 50-day moving average price is $1.68 and its 200 day moving average price is $1.72. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.97.

Ready Capital (NYSE:RC - Get Free Report) last issued its earnings results on Thursday, August 6th. The real estate investment trust reported ($0.47) EPS for the quarter, beating analysts' consensus estimates of ($0.48) by $0.01. The company had revenue of $151.87 million during the quarter, compared to the consensus estimate of $16.41 million. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%. As a group, sell-side analysts expect that Ready Capital will post -0.99 earnings per share for the current year.

Ready Capital Company Profile

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.

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