Ladder Capital (NYSE:LADR) Shares Gap Up After Earnings Beat

Key Points

• Ladder Capital shares jumped after the REIT reported quarterly EPS of $0.35, beating estimates of $0.33, while revenue reached $113.11 million versus the $79.67 million consensus and rose 16.1% year over year.
• The company paid a quarterly dividend of $0.23, equivalent to $0.92 annually and a 10.0% yield; its payout ratio stands at 219.05%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $12.29, while institutional investors own 62.25% of the stock.

Ladder Capital Corp (NYSE:LADR - Get Free Report)'s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $8.82, but opened at $9.33. Ladder Capital shares last traded at $9.1640, with a volume of 218,190 shares changing hands.

The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. Ladder Capital had a net margin of 12.62% and a return on equity of 5.92%. The business had revenue of $113.11 million during the quarter, compared to the consensus estimate of $79.67 million. During the same quarter last year, the firm earned $0.25 EPS. The business's revenue was up 16.1% compared to the same quarter last year.

Ladder Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a $0.23 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 10.0%. Ladder Capital's payout ratio is presently 219.05%.

Analysts Set New Price Targets

Several research firms recently issued reports on LADR. Keefe, Bruyette & Woods decreased their target price 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. Zacks Research upgraded Ladder Capital from a "strong sell" rating to a "hold" rating in a report on Monday, October 5th. Bank of America reaffirmed a "neutral" rating and issued a $10.25 target price on shares of Ladder Capital in a research report on Wednesday, July 29th. Finally, Weiss Ratings lowered shares of Ladder Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $12.29.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Sanders Morris Harris LLC acquired a new position in Ladder Capital during the 3rd quarter worth $264,000. Farther Finance Advisors LLC increased its holdings in Ladder Capital by 47.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 168,904 shares of the real estate investment trust's stock worth $1,475,000 after purchasing an additional 54,102 shares during the period. Versant Capital Management Inc increased its holdings in Ladder Capital by 161.7% during the 3rd quarter. Versant Capital Management Inc now owns 3,599 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 2,224 shares during the period. QRG Capital Management Inc. raised its position in Ladder Capital by 22.3% in the 2nd quarter. QRG Capital Management Inc. now owns 171,225 shares of the real estate investment trust's stock valued at $1,704,000 after purchasing an additional 31,237 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. raised its position in Ladder Capital by 15.0% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 17,855 shares of the real estate investment trust's stock valued at $178,000 after purchasing an additional 2,328 shares in the last quarter. 62.25% of the stock is currently owned by hedge funds and other institutional investors.

Ladder Capital Stock Up 4.0%

The business has a 50-day simple moving average of $9.46 and a 200-day simple moving average of $9.83. The company has a debt-to-equity ratio of 2.81, a quick ratio of 44.15 and a current ratio of 44.15. The company has a market cap of $1.16 billion, a price-to-earnings ratio of 21.82, a price-to-earnings-growth ratio of 0.91 and a beta of 0.98.

About Ladder Capital

Ladder Capital Corp. is a commercial real estate finance company organized as a real estate investment trust (REIT). The company focuses on originating, acquiring, investing in and managing a diversified portfolio of commercial real estate assets and investments. Its activities are primarily concentrated in the United States.

Ladder Capital's platform includes commercial mortgage loans, commercial mortgage-backed securities and other commercial real estate-related investments. The company also owns and manages commercial real estate properties, including assets that can generate rental income through net lease arrangements.

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