BlackRock Inc. Purchases Shares of 17,747,767 Ready Capital Corp $RC

Key Points

• BlackRock acquired 17.75 million Ready Capital shares valued at approximately $31.1 million, giving it a 10.74% stake in the REIT.
• Institutional investors and hedge funds own 55.87% of Ready Capital, with several firms increasing their positions or initiating new stakes.
• Ready Capital shares opened at $1.71 and remain under pressure, while analysts maintain a generally negative outlook with an average “Reduce” rating and a $2.17 consensus price target.

BlackRock Inc. acquired a new position in shares of Ready Capital Corp (NYSE:RC - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 17,747,767 shares of the real estate investment trust's stock, valued at approximately $31,059,000. BlackRock Inc. owned approximately 10.74% of Ready Capital as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of RC. Private Management Group Inc. raised its position in shares of Ready Capital by 197.0% during the fourth quarter. Private Management Group Inc. now owns 4,806,088 shares of the real estate investment trust's stock worth $10,477,000 after purchasing an additional 3,188,135 shares during the period. UBS Group AG increased its stake in Ready Capital by 161.4% in 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 purchasing an additional 1,948,208 shares in the last quarter. Marshall Wace LLP acquired a new stake in Ready Capital during the 2nd quarter worth about $6,542,000. Invesco Ltd. raised its holdings in 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 during the period. Finally, GSA Capital Partners LLP acquired a new stake in Ready Capital during the 2nd quarter worth about $856,000. 55.87% of the stock is currently owned by institutional investors and hedge funds.

Ready Capital Stock Down 3.7%

NYSE:RC opened at $1.71 on Wednesday. The business's fifty day moving average price is $1.68 and its 200 day moving average price is $1.72. The firm has a market capitalization of $281.65 million, a price-to-earnings ratio of -0.49 and a beta of 1.47. The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.97. Ready Capital Corp has a 1-year low of $1.39 and a 1-year high of $4.46.

Ready Capital (NYSE:RC - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported ($0.47) EPS for the quarter, topping analysts' consensus estimates of ($0.48) by $0.01. The firm had revenue of $151.87 million during the quarter, compared to analyst estimates of $16.41 million. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%. On average, sell-side analysts forecast that Ready Capital Corp will post -0.99 earnings per share for the current fiscal year.

Ready Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were given a dividend of $0.01 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.04 dividend on an annualized basis and a yield of 2.3%. Ready Capital's payout ratio is presently -1.15%.

Analysts Set New Price Targets

Several research analysts have commented on RC shares. Zacks Research upgraded shares of Ready Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. 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 research report on Thursday, July 16th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ready Capital in a research note on Friday. Three investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Ready Capital currently has an average rating of "Reduce" and a consensus target price of $2.17.

About Ready Capital

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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