Ready Capital Corp (NYSE:RC) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Analyst consensus "Reduce": Six brokerages cover Ready Capital with a consensus "Reduce" (two sell, four hold) and an average 12‑month price target of $2.8125, with recent downgrades including Piper Sandler cutting its target to $2.00.
• Insider buying: Director Gilbert E. Nathan purchased 30,000 shares at $1.95 on March 6, raising his stake to 216,358 shares (a 16.1% increase); company insiders own about 1.10% of the stock.
• Mixed financial signals: the REIT reported Q (EPS) of ($0.09) that beat estimates and revenue of $207.6M, but shows a negative net margin and ROE; the company declared a $0.01 quarterly dividend ($0.04 annualized, ~2.3% yield) while the stock trades around $1.75 with a market cap near $284M.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) have earned a consensus recommendation of "Reduce" from the six brokerages that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation and four have given a hold recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $2.8125.

RC has been the subject of several analyst reports. Piper Sandler cut their price target on Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a report on Monday, March 2nd. Weiss Ratings restated a "sell (d)" rating on shares of Ready Capital in a report on Thursday, January 22nd.

Insider Buying and Selling

In other Ready Capital news, Director Gilbert E. Nathan purchased 30,000 shares of the stock in a transaction on Friday, March 6th. The stock was bought at an average price of $1.95 per share, for a total transaction of $58,500.00. Following the acquisition, the director directly owned 216,358 shares of the company's stock, valued at $421,898.10. This represents a 16.10% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ready Capital

Several hedge funds have recently modified their holdings of the stock. SG Americas Securities LLC increased its position in Ready Capital by 48.0% during the first quarter. SG Americas Securities LLC now owns 56,748 shares of the real estate investment trust's stock worth $92,000 after purchasing an additional 18,396 shares during the last quarter. Hsbc Holdings PLC purchased a new stake in shares of Ready Capital during the 4th quarter valued at $575,000. Green Ridge Wealth Planning LLC acquired a new stake in shares of Ready Capital during the 4th quarter worth $32,000. Corient Private Wealth LLC raised its position in shares of Ready Capital by 59.8% in the 4th quarter. Corient Private Wealth LLC now owns 65,447 shares of the real estate investment trust's stock worth $143,000 after buying an additional 24,482 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Ready Capital in the 4th quarter worth $48,000. 55.87% of the stock is owned by institutional investors and hedge funds.

Ready Capital Price Performance

NYSE:RC opened at $1.75 on Friday. Ready Capital has a 12-month low of $1.50 and a 12-month high of $4.75. The firm has a market cap of $284.22 million, a price-to-earnings ratio of -1.19 and a beta of 1.45. The company's 50-day moving average is $1.72 and its two-hundred day moving average is $2.32. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.90.

Ready Capital (NYSE:RC - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported ($0.09) earnings per share for the quarter, beating analysts' consensus estimates of ($0.11) by $0.02. The business had revenue of $207.55 million during the quarter, compared to analyst estimates of $133.50 million. Ready Capital had a negative net margin of 39.55% and a negative return on equity of 10.29%. Research analysts expect that Ready Capital will post 0.93 EPS for the current year.

Ready Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, March 31st. Ready Capital's dividend payout ratio (DPR) is presently -2.72%.

About Ready Capital

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.