Ready Capital Corp (NYSE:RC) Given Consensus Rating of "Hold" by Analysts

Key Points

• Ready Capital Corp has received a consensus rating of "Hold" from analysts, with one sell rating, four hold ratings, and one buy rating, aiming for an average price target of $5.45.
• The company reported a loss of $0.14 per share in its latest quarterly earnings, significantly missing estimates and showing a negative net margin of 40.59%.
• Ready Capital declared a quarterly dividend of $0.125 per share, resulting in an annualized yield of 12.0%, despite its current dividend payout ratio being -27.03%.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) have earned a consensus recommendation of "Hold" from the six ratings firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $5.45.

A number of equities analysts have recently weighed in on RC shares. UBS Group dropped their price objective on Ready Capital from $4.50 to $4.00 and set a "neutral" rating for the company in a research note on Wednesday, August 20th. Keefe, Bruyette & Woods dropped their price objective on Ready Capital from $4.25 to $3.75 and set an "underperform" rating for the company in a research note on Tuesday, August 12th. B. Riley dropped their price objective on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Finally, Wall Street Zen lowered Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th.

Hedge Funds Weigh In On Ready Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RC. Nomura Asset Management Co. Ltd. boosted its stake 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 valued at $25,000 after buying an additional 3,600 shares during the last quarter. Larson Financial Group LLC bought a new position in Ready Capital during the first quarter valued at approximately $27,000. US Bancorp DE boosted its stake in Ready Capital by 404.7% during the first quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 4,828 shares during the last quarter. Bogart Wealth LLC bought a new position in Ready Capital during the second quarter valued at approximately $31,000. Finally, Northwestern Mutual Wealth Management Co. bought a new position in Ready Capital during the first quarter valued at approximately $32,000. 55.87% of the stock is owned by institutional investors.

Ready Capital Stock Performance

NYSE RC opened at $4.17 on Monday. The firm has a market cap of $685.26 million, a price-to-earnings ratio of -2.25 and a beta of 1.38. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.76. The business has a 50-day moving average price of $4.17 and a 200-day moving average price of $4.40. Ready Capital has a twelve month low of $3.70 and a twelve month high of $7.96.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13). The business had revenue of ($9.77) million during the quarter, compared to the consensus estimate of $167.26 million. Ready Capital had a positive return on equity of 3.76% and a negative net margin of 40.59%. As a group, equities research analysts predict that Ready Capital will post 0.93 EPS for the current fiscal year.

Ready Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Tuesday, September 30th will be paid a dividend of $0.125 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.50 dividend on an annualized basis and a yield of 12.0%. Ready Capital's dividend payout ratio is presently -27.03%.

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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