Ready Capital (NYSE:RC) Hits New 12-Month Low - What's Next?

Key Points

• Ready Capital shares have reached a new 52-week low of $3.20, marking a significant decline in stock performance with a recent trading price of $3.22.
• Several analysts have downgraded their ratings for Ready Capital, with UBS reducing its price target from $4.00 to $3.50, reflecting diminished confidence in the company's stock.
• The company has announced a quarterly dividend of $0.125 per share, resulting in an annualized dividend yield of 15.5%, despite a negative net margin of 40.59% reported in its latest earnings.

Ready Capital Corp (NYSE:RC - Get Free Report)'s share price reached a new 52-week low on Monday . The stock traded as low as $3.20 and last traded at $3.22, with a volume of 1136323 shares traded. The stock had previously closed at $3.24.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Ready Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ready Capital in a research report on Wednesday, October 8th. UBS Group lowered their price objective on shares of Ready Capital from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Tuesday, October 14th. B. Riley lowered their price objective on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a research report on Monday, August 11th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Ready Capital from $3.75 to $3.50 and set an "underperform" rating on the stock in a research report on Thursday, October 9th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $5.30.

Ready Capital Stock Down 0.5%

The stock has a market capitalization of $529.96 million, a P/E ratio of -1.74 and a beta of 1.45. The firm's fifty day moving average is $3.96 and its 200-day moving average is $4.25. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.76.

Ready Capital (NYSE:RC - Get Free Report) last announced 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 firm had revenue of ($9.77) million for the quarter. As a group, equities research analysts predict that Ready Capital Corp will post 0.93 earnings per share for the current year.

Ready Capital Dividend Announcement

The firm 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. This represents a $0.50 dividend on an annualized basis and a dividend yield of 15.5%. The ex-dividend date of this dividend is Tuesday, September 30th. Ready Capital's payout ratio is -27.03%.

Institutional Investors Weigh In On Ready Capital

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Ready Capital by 0.7% during the first quarter. Vanguard Group Inc. now owns 11,450,959 shares of the real estate investment trust's stock worth $58,285,000 after buying an additional 84,131 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Ready Capital by 1.5% during the second quarter. Geode Capital Management LLC now owns 4,023,581 shares of the real estate investment trust's stock worth $17,585,000 after buying an additional 58,899 shares during the last quarter. Invesco Ltd. grew its holdings in Ready Capital by 16.1% during the first quarter. Invesco Ltd. now owns 3,618,181 shares of the real estate investment trust's stock valued at $18,417,000 after purchasing an additional 502,162 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in Ready Capital by 0.4% during the first quarter. Charles Schwab Investment Management Inc. now owns 2,276,719 shares of the real estate investment trust's stock valued at $11,588,000 after purchasing an additional 10,134 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Ready Capital by 9.4% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,924,767 shares of the real estate investment trust's stock valued at $8,411,000 after purchasing an additional 164,918 shares during the period. 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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