Ladder Capital (NYSE:LADR) Shares Break Above 50-Day Moving Average - Here's Why

Key Points

• Ladder Capital shares rose above their 50-day moving average, trading as high as $9.41 compared with the average of $9.25.
• The REIT beat quarterly earnings expectations, reporting EPS of $0.35 versus $0.33 expected; revenue increased 16.1% year over year to $118.9 million.
• Analysts have a “Moderate Buy” consensus and an average price target of $12.29. The company’s quarterly dividend equates to a 9.8% annualized yield.

Ladder Capital Corp (NYSE:LADR - Get Free Report) shares passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $9.25 and traded as high as $9.41. Ladder Capital shares last traded at $9.3750, with a volume of 2,923,744 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on LADR. Bank of America reaffirmed a "neutral" rating and issued a $10.25 price target on shares of Ladder Capital in a research report on Wednesday, July 29th. B. Riley Financial reaffirmed a "buy" rating on shares of Ladder Capital in a research note on Monday, October 19th. Zacks Research raised Ladder Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings raised shares of Ladder Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, October 27th. Finally, Keefe, Bruyette & Woods decreased their price target on Ladder Capital from $10.75 to $10.25 and set an "outperform" rating on the stock in a research note on Friday, October 9th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Ladder Capital has a consensus rating of "Moderate Buy" and an average price target of $12.29.

Ladder Capital Stock Performance

The firm has a market cap of $1.18 billion, a price-to-earnings ratio of 11.72, a PEG ratio of 0.92 and a beta of 0.96. The stock's fifty day moving average is $9.25 and its two-hundred day moving average is $9.93. The company has a debt-to-equity ratio of 2.98, a quick ratio of 49.89 and a current ratio of 49.90.

Ladder Capital (NYSE:LADR - Get Free Report) last released its quarterly earnings results on Friday, October 16th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. Ladder Capital had a return on equity of 6.98% and a net margin of 23.70%. The company had revenue of $118.90 million during the quarter, compared to analysts' expectations of $79.67 million. During the same quarter in the prior year, the business posted $0.25 earnings per share. The company's revenue for the quarter was up 16.1% compared to the same quarter last year. On average, analysts expect that Ladder Capital Corp will post 0.82 earnings per share for the current fiscal year.

Ladder Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 9.8%. The ex-dividend date of this dividend was Wednesday, September 30th. Ladder Capital's payout ratio is presently 115.00%.

Institutional Investors Weigh In On Ladder Capital

Several large investors have recently modified their holdings of LADR. Kestra Advisory Services LLC increased its stake in Ladder Capital by 7.9% during the third quarter. Kestra Advisory Services LLC now owns 247,090 shares of the real estate investment trust's stock valued at $2,157,000 after acquiring an additional 18,051 shares during the period. Commonwealth Equity Services LLC raised its stake in shares of Ladder Capital by 35.7% in the third quarter. Commonwealth Equity Services LLC now owns 49,861 shares of the real estate investment trust's stock worth $435,000 after acquiring an additional 13,128 shares during the last quarter. Oppenheimer & Co. Inc. lifted its holdings in Ladder Capital by 188.6% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 63,200 shares of the real estate investment trust's stock worth $552,000 after buying an additional 41,300 shares in the last quarter. Access Investment Management LLC boosted its holdings in Ladder Capital by 18.3% in the third quarter. Access Investment Management LLC now owns 571,897 shares of the real estate investment trust's stock valued at $4,993,000 after acquiring an additional 88,451 shares during the last quarter. Finally, Samalin Investment Counsel LLC grew its position in shares of Ladder Capital by 10.0% during the 3rd quarter. Samalin Investment Counsel LLC now owns 16,824 shares of the real estate investment trust's stock worth $147,000 after buying an additional 1,536 shares during the period. 62.25% of the stock is owned by institutional investors.

About Ladder Capital

Ladder Capital Corp. NYSE: LADR is a commercial real estate finance company that operates as a real estate investment trust. Founded in 2008 and headquartered in New York, the company provides financing to commercial property owners and invests in commercial real estate-related assets.

Ladder Capital's activities include originating and acquiring first mortgage loans, mezzanine loans and other commercial real estate debt, as well as investing in commercial mortgage-backed securities. The company also owns and manages a portfolio of commercial real estate properties, giving it exposure to both real estate lending and property ownership.

The company primarily serves the United States commercial real estate market, with investments and lending activities spanning property types such as office, multifamily, industrial, retail and hospitality.

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