Ready Capital (NYSE:RC) Hits New 12-Month Low - Time to Sell?

Key Points

• Ready Capital shares have fallen to a new 52-week low, trading at $3.60, with several research analysts issuing lowered price targets and ratings on the stock.
• The company reported a loss of ($0.14) earnings per share for the last quarter, missing analysts' estimates, and had a negative net margin of 40.59%.
• Ready Capital recently declared a quarterly dividend of $0.125 per share, providing an annual yield of 13.9%, despite a negative dividend payout ratio of -27.03%.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $3.60 and last traded at $3.65, with a volume of 645909 shares. The stock had previously closed at $3.77.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. B. Riley dropped their target price on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. UBS Group cut their target price on shares of 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 decreased their price target on Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a research report on Tuesday, August 12th. Wall Street Zen lowered Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Ready Capital in a research report on Saturday, September 27th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Ready Capital has an average rating of "Reduce" and an average price target of $5.45.

Ready Capital Stock Down 4.6%

The firm has a market capitalization of $590.77 million, a P/E ratio of -1.95 and a beta of 1.45. The firm's 50 day moving average is $4.12 and its two-hundred day moving average is $4.36. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.61.

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

Ready Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.125 per share. The ex-dividend date is Tuesday, September 30th. This represents a $0.50 annualized dividend and a yield of 13.9%. Ready Capital's dividend payout ratio (DPR) is -27.03%.

Institutional Investors Weigh In On Ready Capital

Hedge funds and other institutional investors have recently modified their holdings of the company. GAMMA Investing LLC increased its position in Ready Capital by 1,618.4% during the first quarter. GAMMA Investing LLC now owns 21,068 shares of the real estate investment trust's stock worth $107,000 after acquiring an additional 19,842 shares during the period. LexAurum Advisors LLC bought a new stake in shares of Ready Capital in the first quarter valued at approximately $300,000. Simplicity Wealth LLC acquired a new stake in Ready Capital during the first quarter worth approximately $153,000. GraniteShares Advisors LLC grew its position in Ready Capital by 6.5% during the first quarter. GraniteShares Advisors LLC now owns 387,161 shares of the real estate investment trust's stock worth $1,971,000 after buying an additional 23,460 shares in the last quarter. Finally, Sound Income Strategies LLC increased its stake in Ready Capital by 9,654.5% during the 1st quarter. Sound Income Strategies LLC now owns 60,478 shares of the real estate investment trust's stock worth $308,000 after acquiring an additional 59,858 shares during the period. Institutional investors and hedge funds own 55.87% of the company's stock.

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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