Nexpoint Asset Management L.P. Invests $4.44 Million in Ready Capital Corp $RC

Key Points

• Nexpoint Asset Management L.P. has acquired 873,021 shares in Ready Capital Corp, valued at approximately $4.4 million, representing about 0.51% of the company.
• Ready Capital's recent quarterly earnings showed an earnings per share of ($0.14), missing the consensus estimate, with a negative net margin of 40.59%.
• Ready Capital has announced a quarterly dividend of $0.125, providing an 11.8% yield based on an annualized dividend of $0.50.

Nexpoint Asset Management L.P. bought a new position in Ready Capital Corp (NYSE:RC - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor bought 873,021 shares of the real estate investment trust's stock, valued at approximately $4,444,000. Nexpoint Asset Management L.P. owned 0.51% of Ready Capital at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of RC. Vanguard Group Inc. boosted its stake in Ready Capital by 0.7% during the first quarter. Vanguard Group Inc. now owns 11,450,959 shares of the real estate investment trust's stock worth $58,285,000 after acquiring an additional 84,131 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Ready Capital by 16.1% during the first quarter. Invesco Ltd. now owns 3,618,181 shares of the real estate investment trust's stock valued at $18,417,000 after purchasing an additional 502,162 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Ready Capital by 0.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,276,719 shares of the real estate investment trust's stock worth $11,588,000 after purchasing an additional 10,134 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Ready Capital by 5.2% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,018,413 shares of the real estate investment trust's stock worth $13,766,000 after buying an additional 98,895 shares during the last quarter. Finally, Northern Trust Corp increased its position in Ready Capital by 6.3% during the 4th quarter. Northern Trust Corp now owns 1,833,044 shares of the real estate investment trust's stock valued at $12,501,000 after buying an additional 108,519 shares in the last quarter. 55.87% of the stock is owned by hedge funds and other institutional investors.

Ready Capital Stock Performance

NYSE:RC traded down $0.20 on Wednesday, hitting $4.12. The stock had a trading volume of 911,252 shares, compared to its average volume of 2,408,126. The business's 50-day simple moving average is $4.23 and its two-hundred day simple moving average is $4.54. The stock has a market cap of $676.22 million, a price-to-earnings ratio of -2.23 and a beta of 1.38. Ready Capital Corp has a 52-week low of $3.70 and a 52-week high of $8.41. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.76.

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

Ready Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were given a dividend of $0.125 per share. The ex-dividend date was Monday, June 30th. This represents a $0.50 annualized dividend and a dividend yield of 12.2%. Ready Capital's dividend payout ratio (DPR) is currently -27.03%.

Wall Street Analyst Weigh In

Several research firms have commented on RC. Wall Street Zen downgraded Ready Capital from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. B. Riley lowered their price target on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. UBS Group lowered their price objective on Ready Capital from $4.50 to $4.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 20th. Finally, Keefe, Bruyette & Woods decreased their target price on Ready Capital from $4.25 to $3.75 and set an "underperform" rating for the company in a research report on Tuesday, August 12th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $5.88.

Ready Capital Company 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.