Ready Capital Corp (NYSE:RC) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Ready Capital received a consensus “Reduce” rating from five analysts: two issued sell ratings and three rated the stock a hold. The average 12-month price target is $2.17.
• Shares opened at $1.76, with a market capitalization of approximately $291.6 million and a 52-week range of $1.39 to $4.46. The company reported a quarterly loss of $0.47 per share, slightly better than analysts’ expectations.
• Ready Capital paid a quarterly dividend of $0.01 per share, equivalent to an annualized $0.04 dividend and a 2.3% yield. Institutional investors own approximately 55.87% of the stock.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) have received a consensus recommendation of "Reduce" from the five analysts that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation and three have assigned a hold recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $2.1667.

A number of research firms have weighed in on RC. UBS Group reduced their target price on Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a report on Thursday, July 16th. Weiss Ratings reissued a "sell (e+)" rating on shares of Ready Capital in a report on Tuesday, June 2nd. Finally, Zacks Research raised shares of Ready Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th.

Ready Capital Price Performance

Ready Capital stock opened at $1.76 on Thursday. The firm has a market capitalization of $291.56 million, a P/E ratio of -0.51 and a beta of 1.45. Ready Capital has a one year low of $1.39 and a one year high of $4.46. 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 business has a fifty day moving average price of $1.66 and a 200-day moving average price of $1.73.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported ($0.47) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.48) by $0.01. The company had revenue of $151.87 million for the quarter, compared to analyst estimates of $16.41 million. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%. As a group, equities research analysts forecast that Ready Capital will post -0.99 EPS for the current year.

Ready Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were issued a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, June 30th. Ready Capital's dividend payout ratio is -1.15%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Quarry LP grew its position in shares of Ready Capital by 4,494.6% during the 3rd quarter. Quarry LP now owns 9,373 shares of the real estate investment trust's stock valued at $36,000 after purchasing an additional 9,169 shares in the last quarter. Ausdal Financial Partners Inc. bought a new position in shares of Ready Capital in the third quarter worth $39,000. Franklin Resources Inc. purchased a new stake in shares of Ready Capital in the third quarter worth $44,000. M&T Bank Corp purchased a new stake in shares of Ready Capital in the second quarter worth $50,000. Finally, United Services Automobile Association purchased a new stake in shares of Ready Capital in the first quarter worth $59,000. 55.87% of the stock is owned by institutional investors.

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.

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