Ready Capital Corp $RC Shares Sold by Goldman Sachs Group Inc.

Key Points

• Goldman Sachs Group Inc. reduced its stake in Ready Capital Corp by 46.3%, owning approximately $3.3 million worth of shares after selling 557,294 during the first quarter.
• Multiple analysts have issued reduced price targets for Ready Capital, with consensus ratings shifting from "hold" to "sell," and a revised price target set around $5.45.
• The company reported a quarterly earnings miss, with an EPS of ($0.14), and has announced a quarterly dividend of $0.125, yielding 11.6%.

Goldman Sachs Group Inc. lessened its position in shares of Ready Capital Corp (NYSE:RC - Free Report) by 46.3% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 647,423 shares of the real estate investment trust's stock after selling 557,294 shares during the quarter. Goldman Sachs Group Inc. owned about 0.38% of Ready Capital worth $3,295,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Illinois Municipal Retirement Fund grew its stake in Ready Capital by 27.6% during the 1st quarter. Illinois Municipal Retirement Fund now owns 116,462 shares of the real estate investment trust's stock worth $593,000 after buying an additional 25,198 shares during the last quarter. Sowell Financial Services LLC raised its stake in shares of Ready Capital by 14.3% during the first quarter. Sowell Financial Services LLC now owns 52,763 shares of the real estate investment trust's stock worth $269,000 after purchasing an additional 6,591 shares during the last quarter. Cambridge Investment Research Advisors Inc. raised its stake in shares of Ready Capital by 40.5% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 79,072 shares of the real estate investment trust's stock worth $402,000 after purchasing an additional 22,797 shares during the last quarter. Sound Income Strategies LLC raised its stake in shares of Ready Capital by 9,654.5% during the first quarter. Sound Income Strategies LLC now owns 60,478 shares of the real estate investment trust's stock worth $308,000 after purchasing an additional 59,858 shares during the last quarter. Finally, Wolverine Asset Management LLC raised its stake in shares of Ready Capital by 152.5% during the first quarter. Wolverine Asset Management LLC now owns 555,556 shares of the real estate investment trust's stock worth $2,828,000 after purchasing an additional 335,502 shares during the last quarter. Hedge funds and other institutional investors own 55.87% of the company's stock.

Ready Capital Stock Performance

Shares of NYSE RC remained flat at $4.32 during trading on Friday. The stock had a trading volume of 6,411,087 shares, compared to its average volume of 2,108,397. Ready Capital Corp has a 12 month low of $3.70 and a 12 month high of $8.31. The stock has a market capitalization of $709.91 million, a PE ratio of -2.34 and a beta of 1.38. The business's fifty day simple moving average is $4.18 and its 200-day simple moving average is $4.44. 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 quarterly earnings results on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13). The company had revenue of ($9.77) million during 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 year.

Ready Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be issued a $0.125 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.50 annualized dividend and a yield of 11.6%. Ready Capital's payout ratio is -27.03%.

Analyst Ratings Changes

RC has been the subject of several analyst reports. UBS Group cut their price target on Ready Capital from $4.50 to $4.00 and set a "neutral" rating for the company in a research note on Wednesday, August 20th. B. Riley cut their price target on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Keefe, Bruyette & Woods decreased their price target on Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a research note on Tuesday, August 12th. Finally, Wall Street Zen downgraded Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $5.45.

About Ready Capital

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.