Ready Capital Corp (NYSE:RC) Given Average Rating of "Reduce" by Brokerages

Key Points

• Ready Capital Corp has received an average rating of "Reduce" from analysts, with two sell recommendations, five holds, and one buy, reflecting negative sentiment towards the company's stock.
• The company's current 12-month price target is $5.30, but several analysts have recently downgraded their ratings and price objectives, indicating ongoing concerns about its performance.
• Ready Capital declared a quarterly dividend of $0.125 per share, resulting in a significant annualized yield of 16.2%, despite facing financial challenges with a reported negative margin.

Ready Capital Corp (NYSE:RC - Get Free Report) has been given an average rating of "Reduce" by the eight analysts that are currently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and one has given a buy recommendation to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $5.30.

Several equities analysts have recently issued reports on RC shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ready Capital in a research note on Wednesday, October 8th. Keefe, Bruyette & Woods decreased their price objective on Ready Capital from $3.75 to $3.50 and set an "underperform" rating for the company in a research note on Thursday, October 9th. UBS Group cut their target price on Ready Capital from $4.00 to $3.50 and set a "neutral" rating on the stock in a research note on Tuesday, October 14th. B. Riley decreased their price target on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a report on Monday, August 11th. Finally, Zacks Research raised shares of Ready Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 14th.

Ready Capital Stock Down 1.1%

Shares of RC opened at $3.10 on Friday. The business's 50 day simple moving average is $3.90 and its 200-day simple moving average is $4.21. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.61. The company has a market capitalization of $508.60 million, a P/E ratio of -1.67 and a beta of 1.45. Ready Capital has a one year low of $3.05 and a one year high of $7.64.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings results on Tuesday, September 9th. The real estate investment trust reported ($0.10) earnings per share (EPS) for the quarter. Ready Capital had a negative net margin of 40.59% and a positive return on equity of 3.76%. The business had revenue of ($9.77) million during the quarter. As a group, sell-side analysts predict that Ready Capital will post 0.93 EPS for the current fiscal year.

Ready Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be paid a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 16.2%. The ex-dividend date is Tuesday, September 30th. Ready Capital's payout ratio is presently -27.03%.

Hedge Funds Weigh In On Ready Capital

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Larson Financial Group LLC bought a new position in Ready Capital during the first quarter worth about $27,000. Nomura Asset Management Co. Ltd. lifted its position in Ready Capital by 163.6% during the second quarter. Nomura Asset Management Co. Ltd. now owns 5,800 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 3,600 shares during the period. US Bancorp DE increased its stake in Ready Capital by 404.7% in the first quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock valued at $31,000 after acquiring an additional 4,828 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Ready Capital during the 1st quarter worth $32,000. Finally, Bogart Wealth LLC bought a new position in Ready Capital in the 2nd quarter valued at approximately $31,000. 55.87% of the stock is owned by institutional investors.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments.

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