Advisors Asset Management Inc. Raises Stock Position in Ready Capital Corp $RC

Key Points

• Advisors Asset Management Inc. increased its stake in Ready Capital Corp by 20.5% to own approximately 0.49% of the company, valued at about $4.27 million.
• Multiple institutional investors have shown significant increases in their holdings, with Sound Income Strategies LLC raising its position by an extraordinary 9,654.5% during the same quarter.
• Ready Capital reported a quarterly loss of ($0.14) EPS, falling short of the consensus estimate, and recently declared a quarterly dividend with a yield of 11.7%.

Advisors Asset Management Inc. grew its position in Ready Capital Corp (NYSE:RC - Free Report) by 20.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 838,252 shares of the real estate investment trust's stock after buying an additional 142,895 shares during the quarter. Advisors Asset Management Inc. owned 0.49% of Ready Capital worth $4,267,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the company. Price T Rowe Associates Inc. MD lifted its stake in Ready Capital by 11.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 113,629 shares of the real estate investment trust's stock worth $775,000 after acquiring an additional 11,922 shares during the period. 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 purchasing an additional 108,519 shares during the period. Deutsche Bank AG raised its holdings in shares of Ready Capital by 50.7% in the 4th quarter. Deutsche Bank AG now owns 134,542 shares of the real estate investment trust's stock valued at $918,000 after purchasing an additional 45,243 shares in the last quarter. Graham Capital Management L.P. lifted its position in shares of Ready Capital by 271.0% in the 4th quarter. Graham Capital Management L.P. now owns 119,816 shares of the real estate investment trust's stock worth $817,000 after purchasing an additional 87,523 shares during the period. Finally, Hudson Bay Capital Management LP bought a new position in shares of Ready Capital during the fourth quarter valued at approximately $4,393,000. Hedge funds and other institutional investors own 55.87% of the company's stock.

Ready Capital Trading Up 3.2%

Shares of NYSE:RC traded up $0.13 during midday trading on Thursday, reaching $4.24. 2,380,250 shares of the company's stock were exchanged, compared to its average volume of 2,034,661. The firm's 50 day simple moving average is $4.21 and its two-hundred day simple moving average is $4.52. Ready Capital Corp has a fifty-two week low of $3.70 and a fifty-two week high of $8.41. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.61. The stock has a market cap of $696.76 million, a price-to-earnings ratio of -2.29 and a beta of 1.38.

Ready Capital (NYSE:RC - Get Free Report) last announced its earnings results on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share 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 analysts' expectations 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, sell-side analysts forecast that Ready Capital Corp will post 0.93 EPS for the current fiscal year.

Ready Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were issued a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 11.8%. The ex-dividend date was Monday, June 30th. Ready Capital's dividend payout ratio (DPR) is -27.03%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Keefe, Bruyette & Woods cut their price objective 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. Wall Street Zen lowered Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. B. Riley decreased their price target on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. Finally, UBS Group lowered their price target on shares of Ready Capital from $4.50 to $4.00 and set a "neutral" rating on the stock in a report on Wednesday, August 20th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus 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.