Nexpoint Asset Management L.P. Makes New $4.44 Million Investment 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. purchased a new stake in Ready Capital Corp (NYSE:RC - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 873,021 shares of the real estate investment trust's stock, valued at approximately $4,444,000. Nexpoint Asset Management L.P. owned about 0.51% of Ready Capital as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently bought and sold shares of the company. Larson Financial Group LLC bought a new stake in shares of Ready Capital in the first quarter valued at about $27,000. US Bancorp DE raised its stake in shares of Ready Capital by 404.7% in the first 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 last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Ready Capital in the first quarter valued at approximately $32,000. IFP Advisors Inc boosted its position in 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 buying an additional 6,841 shares during the last quarter. Finally, Bfsg LLC bought a new position in Ready Capital in the 1st quarter valued at $52,000. 55.87% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

Ready Capital Stock Performance

Shares of RC traded up $0.03 during mid-day trading on Friday, hitting $4.29. 1,224,131 shares of the company's stock were exchanged, compared to its average volume of 2,043,903. Ready Capital Corp has a 52 week low of $3.70 and a 52 week high of $8.41. The stock's 50-day simple moving average is $4.24 and its 200-day simple moving average is $4.56. The firm has a market cap of $704.15 million, a price-to-earnings ratio of -2.32 and a beta of 1.38. 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 announced its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13). The firm had revenue of ($9.77) million during the quarter, compared to the consensus estimate of $167.26 million. Ready Capital had a negative net margin of 40.59% and a positive return on equity of 3.76%. On average, equities research analysts expect that Ready Capital Corp will post 0.93 EPS for the current year.

Ready Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 11.7%. The ex-dividend date of this dividend was Monday, June 30th. Ready Capital's dividend payout ratio (DPR) is -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.