Ready Capital (NYSE:RC) Announces Earnings Results

Key Points

• Ready Capital reported a quarterly loss of $0.53 per share, missing the $0.42-per-share loss analysts expected, despite revenue of $25.33 million topping the $23.10 million estimate.
• Shares fell 18.7% in Friday trading to $0.87. Analysts’ average rating was “Reduce,” with an average price target of $1.50.
• The company paid a quarterly dividend of $0.01 per share, equal to $0.04 annualized and a 4.6% yield.

Ready Capital (NYSE:RC - Get Free Report) issued its quarterly earnings results on Thursday. The real estate investment trust reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.11), FiscalAI reports. The business had revenue of $25.33 million during the quarter, compared to analyst estimates of $23.10 million. Ready Capital had a negative net margin of 131.76% and a negative return on equity of 16.78%.

Ready Capital Trading Down 18.7%

RC traded down $0.20 during trading on Friday, reaching $0.87. 7,556,149 shares of the company's stock were exchanged, compared to its average volume of 1,808,733. The company's fifty day moving average price is $1.34 and its 200-day moving average price is $1.66. The firm has a market capitalization of $143.72 million, a PE ratio of -0.23 and a beta of 1.55. Ready Capital has a fifty-two week low of $0.85 and a fifty-two week high of $2.98. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.91 and a current ratio of 1.91.

Ready Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were issued a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date of this dividend was Wednesday, September 30th. Ready Capital's payout ratio is currently -1.15%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Weiss Ratings reissued a "sell (e+)" rating on shares of Ready Capital in a research report on Friday, August 28th. Piper Sandler cut their target price on shares of Ready Capital from $2.00 to $1.25 and set a "neutral" rating for the company in a research note on Friday, October 9th. UBS Group reduced their price target on shares of Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a report on Thursday, July 16th. Zacks Research upgraded shares of Ready Capital from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Ready Capital from $1.40 to $1.25 and set an "underperform" rating on the stock in a report on Friday, October 9th. Three research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Ready Capital presently has an average rating of "Reduce" and an average target price of $1.50.

About Ready Capital

Ready Capital Corporation NYSE: RC is a real estate finance company that operates as a mortgage real estate investment trust. The company provides financing to owners, operators and developers of commercial real estate, with a focus on small- to mid-sized properties and borrowers that may not be served by traditional banks.

Ready Capital originates, acquires, finances and services a range of commercial real estate loans. Its offerings have included bridge loans, construction loans, loans secured by transitional properties, multifamily financing and small business administration (SBA) loans.

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