Ready Capital (NYSE:RC) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Ready Capital beat earnings expectations, reporting quarterly EPS of negative $0.47 versus the consensus estimate of negative $0.48. Revenue totaled $151.87 million, far above the $16.41 million estimate, though profitability remained weak with a negative net margin of 131.76%.
• The stock rose 10.4% to $1.71, but remains near its 12-month low and well below its high of $4.46. Analysts maintain a consensus “Reduce” rating, with an average price target of $2.62.
• Ready Capital declared a quarterly dividend of $0.01, equivalent to $0.04 annually and a 2.3% yield. Institutional investors own approximately 55.87% of the company’s shares.

Ready Capital (NYSE:RC - Get Free Report) posted its earnings results on Thursday. The real estate investment trust reported ($0.47) EPS for the quarter, topping analysts' consensus estimates of ($0.48) by $0.01, FiscalAI reports. The company had revenue of $151.87 million for the quarter, compared to the consensus estimate of $16.41 million. Ready Capital had a negative return on equity of 18.68% and a negative net margin of 131.76%.

Ready Capital Trading Up 10.4%

RC traded up $0.16 on Friday, hitting $1.71. The company had a trading volume of 2,573,858 shares, compared to its average volume of 1,226,243. The business's fifty day simple moving average is $1.64 and its 200 day simple moving average is $1.77. The company has a quick ratio of 1.60, a current ratio of 1.60 and a debt-to-equity ratio of 0.95. Ready Capital has a 12-month low of $1.39 and a 12-month high of $4.46. The company has a market cap of $282.69 million, a PE ratio of -0.49 and a beta of 1.45.

Ready Capital Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were given a $0.01 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $0.04 annualized dividend and a yield of 2.3%. Ready Capital's dividend payout ratio (DPR) is currently -1.15%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on RC. Zacks Research raised Ready Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Weiss Ratings reiterated a "sell (e+)" rating on shares of Ready Capital in a research report on Tuesday, June 2nd. Finally, UBS Group cut their target price on shares of Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a report on Thursday, July 16th. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Ready Capital has a consensus rating of "Reduce" and an average price target of $2.62.

Institutional Investors Weigh In On Ready Capital

Several institutional investors have recently modified their holdings of the stock. Quarry LP increased 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 during the last quarter. Ausdal Financial Partners Inc. bought a new stake in Ready Capital in the third quarter worth $39,000. Franklin Resources Inc. purchased a new position in Ready Capital during the third quarter worth $44,000. M&T Bank Corp purchased a new position in Ready Capital during the second quarter worth $50,000. Finally, SummitTX Capital L.P. purchased a new position in Ready Capital during the fourth quarter worth $53,000. 55.87% of the stock is owned by institutional investors.

Ready Capital Company Profile

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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