Ready Capital Corp (NYSE:RC) Stock Rated "Reduce" by Sell-Side Brokerages

Key Points

• Ready Capital received a consensus “Reduce” rating from five analysts, including two sell ratings and three holds. The average 12-month price target is $2.17, compared with the reported share price of $1.30.
• Institutional investors and hedge funds own 55.87% of the company, with BlackRock initiating a position worth approximately $31.1 million and other funds increasing their holdings.
• Ready Capital reported a quarterly loss of $0.47 per share, though it narrowly exceeded analyst expectations. The company also declared a quarterly dividend of $0.01 per share, representing a 3.1% annualized yield.

Ready Capital Corp (NYSE:RC - Get Free Report) has been assigned a consensus rating of "Reduce" from the five analysts that are covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell rating and three have issued a hold rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $2.17.

A number of brokerages have recently commented on RC. UBS Group lowered their price objective on Ready Capital from $2.50 to $2.00 and set a "neutral" rating on the stock in a report on Thursday, July 16th. Weiss Ratings restated a "sell (e+)" rating on shares of Ready Capital in a report on Friday, August 28th. Finally, Zacks Research raised Ready Capital from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Ready Capital during the 2nd quarter worth $31,059,000. Private Management Group Inc. grew its position in shares of Ready Capital by 9.5% in the second 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 last quarter. Ieq Capital LLC bought a new position in shares of Ready Capital in the second quarter worth about $817,000. Odyssean LLC increased its stake in shares of Ready Capital by 362.9% in the second quarter. Odyssean LLC now owns 349,648 shares of the real estate investment trust's stock worth $612,000 after purchasing an additional 274,118 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Ready Capital in the second quarter worth about $845,000. 55.87% of the stock is currently owned by institutional investors and hedge funds.

Ready Capital Stock Performance

Shares of NYSE RC opened at $1.30 on Friday. The business's 50-day moving average price is $1.61 and its two-hundred day moving average price is $1.67. 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 one year low of $1.07 and a one year high of $3.63. The company has a market capitalization of $215.57 million, a P/E ratio of -0.38 and a beta of 1.55.

Ready Capital (NYSE:RC - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported ($0.47) earnings per share for the quarter, topping 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%. Analysts anticipate that Ready Capital will post -0.99 earnings per share for the current fiscal year.

Ready Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Wednesday, September 30th. Ready Capital's payout ratio is presently -1.15%.

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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