Y Intercept Hong Kong Ltd Reduces Holdings in Ready Capital Corp $RC

Key Points

• Y Intercept Hong Kong Ltd slashed its Ready Capital stake by 97% in the first quarter, leaving it with 26,759 shares worth about $43,000 after selling 856,555 shares.
• Analysts remain cautious on RC, with Zacks cutting the stock to “strong sell,” UBS lowering its price target to $2.00, and the overall consensus rating sitting at “Reduce.”
• Ready Capital posted weak results and a tiny dividend: its latest quarter missed earnings estimates, while the company declared a quarterly dividend of $0.01 per share, implying a 2.4% annual yield at recent prices.

Y Intercept Hong Kong Ltd decreased its position in shares of Ready Capital Corp (NYSE:RC - Free Report) by 97.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 26,759 shares of the real estate investment trust's stock after selling 856,555 shares during the period. Y Intercept Hong Kong Ltd's holdings in Ready Capital were worth $43,000 at the end of the most recent reporting period.

A number of other institutional investors also recently made changes to their positions in RC. Quarry LP raised its holdings in Ready Capital by 4,494.6% in the third quarter. Quarry LP now owns 9,373 shares of the real estate investment trust's stock valued at $36,000 after acquiring an additional 9,169 shares in the last quarter. Ausdal Financial Partners Inc. bought a new stake in Ready Capital in the 3rd quarter valued at about $39,000. Franklin Resources Inc. acquired a new position in shares of Ready Capital during the third quarter worth approximately $44,000. M&T Bank Corp acquired a new position in Ready Capital during the 2nd quarter worth $50,000. Finally, United Services Automobile Association acquired a new stake in Ready Capital in the first quarter worth about $59,000. 55.87% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts recently commented on RC shares. Zacks Research lowered shares of Ready Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, July 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ready Capital in a report on Tuesday, June 2nd. Finally, UBS Group dropped their price target on shares of Ready Capital from $2.50 to $2.00 and set a "neutral" rating on the stock in a research report on Thursday. Three research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $2.62.

Ready Capital Stock Up 1.5%

Shares of Ready Capital stock opened at $1.65 on Friday. Ready Capital Corp has a 12-month low of $1.50 and a 12-month high of $4.58. The firm has a market capitalization of $271.79 million, a PE ratio of -0.52 and a beta of 1.43. The company has a quick ratio of 1.60, a current ratio of 1.60 and a debt-to-equity ratio of 0.95. The stock's fifty day moving average is $1.72 and its 200-day moving average is $1.83.

Ready Capital (NYSE:RC - Get Free Report) last released its earnings results on Thursday, May 7th. The real estate investment trust reported ($0.33) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($0.18). Ready Capital had a negative return on equity of 14.69% and a negative net margin of 102.10%.The firm had revenue of $130.55 million during the quarter, compared to analysts' expectations of $68.67 million. Equities analysts anticipate that Ready Capital Corp will post -0.94 earnings per share for the current year.

Ready Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, June 30th. Ready Capital's payout ratio is presently -1.26%.

Ready Capital Profile

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.

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