Ladder Capital (NYSE:LADR) Reaches New 52-Week Low - Time to Sell?

Key Points

• New 52-week low: Ladder Capital (LADR) fell to $9.68, trading below its 50- and 200-day moving averages and down about 2.3% on the session, with a market cap near $1.23 billion.
• Generous but potentially risky dividend: The company declared a quarterly $0.23 dividend (annualized $0.92) for a 9.5% yield, while the dividend payout ratio is an elevated 180.39%, raising sustainability concerns.
• Mixed analyst outlook: MarketBeat data shows an average rating of “Moderate Buy” and an average target of $12.92, but several firms have downgraded the stock (including sell/strong-sell calls) amid divergent views.

Ladder Capital Corp (NYSE:LADR - Get Free Report) shares hit a new 52-week low during trading on Friday . The company traded as low as $9.68 and last traded at $9.6850, with a volume of 703413 shares trading hands. The stock had previously closed at $9.92.

Analyst Upgrades and Downgrades

Several research firms have issued reports on LADR. Capital One Financial set a $13.00 price objective on Ladder Capital in a report on Wednesday, January 21st. BTIG Research reissued a "buy" rating and set a $13.50 price target on shares of Ladder Capital in a research report on Monday, February 2nd. Wall Street Zen lowered shares of Ladder Capital from a "hold" rating to a "sell" rating in a research note on Friday, January 23rd. Zacks Research cut shares of Ladder Capital from a "hold" rating to a "strong sell" rating in a report on Monday, February 16th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Ladder Capital in a research note on Monday, December 29th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $12.92.

Ladder Capital Trading Down 2.3%

The company has a current ratio of 29.65, a quick ratio of 29.65 and a debt-to-equity ratio of 2.37. The company has a market cap of $1.23 billion, a price-to-earnings ratio of 19.01, a price-to-earnings-growth ratio of 0.74 and a beta of 1.00. The firm has a 50-day moving average price of $10.48 and a 200 day moving average price of $10.81.

Ladder Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date is Tuesday, March 31st. Ladder Capital's dividend payout ratio (DPR) is presently 180.39%.

Hedge Funds Weigh In On Ladder Capital

Several institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC increased its position in Ladder Capital by 111.7% in the first quarter. AQR Capital Management LLC now owns 22,189 shares of the real estate investment trust's stock worth $253,000 after buying an additional 11,709 shares during the period. Caxton Associates LLP acquired a new stake in shares of Ladder Capital in the first quarter valued at approximately $209,000. Jane Street Group LLC raised its holdings in shares of Ladder Capital by 997.0% during the first quarter. Jane Street Group LLC now owns 180,230 shares of the real estate investment trust's stock valued at $2,056,000 after buying an additional 163,800 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Ladder Capital by 0.8% during the second quarter. Geode Capital Management LLC now owns 2,676,157 shares of the real estate investment trust's stock worth $28,771,000 after buying an additional 20,022 shares during the period. Finally, Intech Investment Management LLC grew its holdings in Ladder Capital by 3.6% in the 2nd quarter. Intech Investment Management LLC now owns 61,798 shares of the real estate investment trust's stock worth $664,000 after buying an additional 2,131 shares in the last quarter. 62.25% of the stock is owned by institutional investors.

Ladder Capital Company Profile

Ladder Capital Corp NYSE: LADR is a publicly traded commercial real estate finance company structured as a real estate investment trust. The firm specializes in originating, acquiring and managing a diversified portfolio of commercial mortgage loans, subordinate financings such as mezzanine loans and B-notes, and equity investments. In addition to direct lending activities, Ladder Capital invests in and manages commercial mortgage‐backed securities (CMBS) and commercial real estate collateralized loan obligations (CRE CLOs), providing financing across a range of property types including office, retail, multifamily, industrial and hospitality assets.

Since its inception in 2008, Ladder Capital has developed a platform that supports both balance-sheet lending and structured securitization.

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