Invesco Ltd. Acquires 502,162 Shares of Ready Capital Corp $RC

Key Points

• Invesco Ltd. increased its stake in Ready Capital Corp by 16.1%, owning approximately 3.6 million shares valued at $18.4 million as of the latest SEC filing.
• Ready Capital's quarterly earnings report showed a significant miss with an EPS of ($0.14), compared to analysts' expectations of ($0.01), resulting in a negative net margin of 40.59%.
• The company announced a quarterly dividend of $0.125, offering investors an annualized yield of 13.5%, despite a payout ratio of -27.03%.

Invesco Ltd. lifted its position in Ready Capital Corp (NYSE:RC - Free Report) by 16.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,618,181 shares of the real estate investment trust's stock after acquiring an additional 502,162 shares during the period. Invesco Ltd. owned approximately 2.10% of Ready Capital worth $18,417,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Larson Financial Group LLC acquired a new stake in shares of Ready Capital in the 1st quarter valued at approximately $27,000. US Bancorp DE raised its position in shares of Ready Capital by 404.7% in the 1st quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock valued at $31,000 after acquiring an additional 4,828 shares during the period. Sterling Capital Management LLC raised its position in shares of Ready Capital by 822.8% in the 4th quarter. Sterling Capital Management LLC now owns 5,177 shares of the real estate investment trust's stock valued at $35,000 after acquiring an additional 4,616 shares during the period. IFP Advisors Inc raised its position in shares of Ready Capital by 1,410.5% in the 1st quarter. IFP Advisors Inc now owns 7,326 shares of the real estate investment trust's stock valued at $37,000 after acquiring an additional 6,841 shares during the period. Finally, Bfsg LLC acquired a new stake in shares of Ready Capital in the 1st quarter valued at approximately $52,000. 55.87% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Wall Street Zen downgraded shares of Ready Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. UBS Group cut their price target on shares of Ready Capital from $4.50 to $4.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 20th. Keefe, Bruyette & Woods dropped their target price on shares of Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a report on Tuesday, August 12th. Finally, B. Riley dropped their target price on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a report on Monday, August 11th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Ready Capital currently has an average rating of "Hold" and an average price target of $5.88.

Ready Capital Stock Up 2.8%

RC stock traded up $0.12 during mid-day trading on Wednesday, hitting $4.21. 3,757,615 shares of the company were exchanged, compared to its average volume of 2,129,692. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.61 and a current ratio of 1.61. The firm has a market cap of $691.01 million, a P/E ratio of -2.27 and a beta of 1.47. The firm's 50 day simple moving average is $4.27 and its 200 day simple moving average is $4.71. Ready Capital Corp has a 1-year low of $3.70 and a 1-year high of $8.41.

Ready Capital (NYSE:RC - Get Free Report) last announced its earnings results on Thursday, August 7th. The real estate investment trust reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.13). The company had revenue of ($9.77) million for the quarter, compared to analyst estimates of $167.26 million. Ready Capital had a positive return on equity of 3.76% and a negative net margin of 40.59%. On average, sell-side analysts predict that Ready Capital Corp will post 0.93 EPS for the current fiscal year.

Ready Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 11.9%. The ex-dividend date of this dividend was Monday, June 30th. Ready Capital's dividend payout ratio (DPR) is currently -27.03%.

Ready Capital Profile

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.