Ready Capital (NYSE:RC) Share Price Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Ready Capital shares fell below their 200-day moving average, trading as low as $1.15 and last changing hands at $1.185, versus a 200-day average of $1.64.
• Analyst sentiment remains weak: the consensus rating is “Reduce”, with a target price of $1.50. Piper Sandler and Keefe, Bruyette & Woods recently cut their targets to $1.25, while other analysts maintained neutral or sell-equivalent ratings.
• The REIT reported a quarterly loss of $0.47 per share, negative margins and return on equity, and analysts expect a full-year loss of $1.00 per share. It declared a quarterly dividend of $0.01, equivalent to a 3.4% annualized yield at the reported share price.

Ready Capital Corp (NYSE:RC - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $1.64 and traded as low as $1.15. Ready Capital shares last traded at $1.1850, with a volume of 1,463,471 shares traded.

Analyst Ratings Changes

Several research analysts have recently issued reports on RC shares. Weiss Ratings reiterated a "sell (e+)" rating on shares of Ready Capital in a report on Friday, August 28th. Piper Sandler lowered their price objective on shares of Ready Capital from $2.00 to $1.25 and set a "neutral" rating on the stock in a research note on Friday, October 9th. Keefe, Bruyette & Woods dropped their target price on Ready Capital from $1.40 to $1.25 and set an "underperform" rating on the stock in a report on Friday, October 9th. Zacks Research raised Ready Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. Finally, UBS Group cut their target price on Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a research report on Thursday, July 16th. Three investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Ready Capital has a consensus rating of "Reduce" and a consensus target price of $1.50.

Ready Capital Stock Performance

The company has a debt-to-equity ratio of 0.97, a current ratio of 1.91 and a quick ratio of 1.91. The firm has a market cap of $195.75 million, a price-to-earnings ratio of -0.34 and a beta of 1.55. The company has a fifty day moving average price of $1.53 and a two-hundred day moving average price of $1.64.

Ready Capital (NYSE:RC - Get Free Report) last announced its earnings results on Thursday, August 6th. The real estate investment trust reported ($0.47) earnings per share for the quarter, beating the consensus estimate of ($0.48) by $0.01. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%. The business had revenue of $151.87 million during the quarter, compared to analysts' expectations of $16.41 million. As a group, equities research analysts expect that Ready Capital Corp will post -1.00 EPS for the current year.

Ready Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Wednesday, September 30th. Ready Capital's dividend payout ratio is presently -1.15%.

Hedge Funds Weigh In On Ready Capital

Several large investors have recently made changes to their positions in the business. HB Wealth Management LLC boosted its holdings in Ready Capital by 44.2% during the second quarter. HB Wealth Management LLC now owns 18,951 shares of the real estate investment trust's stock worth $33,000 after buying an additional 5,812 shares in the last quarter. Cetera Investment Advisers grew its position in Ready Capital by 47.9% in the first quarter. Cetera Investment Advisers now owns 40,134 shares of the real estate investment trust's stock worth $65,000 after buying an additional 12,998 shares during the last quarter. Focus Partners Advisor Solutions LLC bought a new position in shares of Ready Capital in the second quarter valued at $26,000. Public Employees Retirement System of Ohio bought a new position in shares of Ready Capital in the second quarter valued at $28,000. Finally, Royal Bank of Canada increased its holdings in shares of Ready Capital by 204.9% in the first quarter. Royal Bank of Canada now owns 24,888 shares of the real estate investment trust's stock valued at $40,000 after buying an additional 16,724 shares in the last quarter. Institutional investors own 55.87% of the company's stock.

Ready Capital Company Profile

Ready Capital Corporation NYSE: RC is a real estate finance company organized as a real estate investment trust (REIT). The company focuses on originating, acquiring, financing and servicing loans secured by commercial real estate, primarily in the United States.

Ready Capital provides financing for a range of property types and transactions, including bridge loans, construction loans, mortgage loans and other forms of debt financing. Its portfolio has included loans backed by multifamily, residential, small-balance commercial and other income-producing properties.

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