Ready Capital (NYSE:RC) Posts Earnings Results, Misses Expectations By $0.13 EPS

Key Points

• Ready Capital reported an earnings per share (EPS) of ($0.14), significantly missing analysts' expectations of ($0.01) by ($0.13).
• Following the earnings announcement, Ready Capital's stock fell 3.8%, closing at $4.07 with heavy trading volume exceeding its average.
• The company declared a quarterly dividend of $0.125 per share, reflecting an annualized yield of 12.3%.

Ready Capital (NYSE:RC - Get Free Report) announced its earnings results on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.13), Zacks reports. Ready Capital had a negative net margin of 40.59% and a positive return on equity of 3.76%. The business had revenue of ($9.77) million for the quarter, compared to the consensus estimate of $167.26 million.

Ready Capital Price Performance

Shares of Ready Capital stock traded down $0.07 during midday trading on Thursday, hitting $3.86. 1,527,700 shares of the company were exchanged, compared to its average volume of 2,445,471. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.78. The firm has a market cap of $633.49 million, a P/E ratio of -2.08 and a beta of 1.47. Ready Capital has a 52 week low of $3.77 and a 52 week high of $8.64. The firm has a 50 day simple moving average of $4.37 and a 200-day simple moving average of $4.90.

Ready Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 13.0%. The ex-dividend date was Monday, June 30th. Ready Capital's dividend payout ratio (DPR) is -27.03%.

Analyst Ratings Changes

A number of brokerages have commented on RC. Keefe, Bruyette & Woods reduced their price objective on Ready Capital from $4.25 to $3.75 and set an "underperform" rating for the company in a research report on Tuesday. B. Riley reduced their price objective on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research report on Monday. Finally, UBS Group reduced their price objective on Ready Capital from $4.75 to $4.50 and set a "neutral" rating for the company in a research report on Wednesday, May 21st. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, Ready Capital currently has an average rating of "Hold" and a consensus price target of $5.96.

Hedge Funds Weigh In On Ready Capital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Dynamic Technology Lab Private Ltd acquired a new stake in Ready Capital during the 1st quarter valued at $89,000. United Services Automobile Association acquired a new stake in shares of Ready Capital in the 1st quarter valued at $59,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Ready Capital by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 442,432 shares of the real estate investment trust's stock valued at $2,252,000 after buying an additional 9,892 shares during the period. Focus Partners Wealth increased its stake in shares of Ready Capital by 13.1% in the 1st quarter. Focus Partners Wealth now owns 263,820 shares of the real estate investment trust's stock valued at $1,343,000 after buying an additional 30,477 shares during the period. Finally, Intech Investment Management LLC increased its stake in shares of Ready Capital by 13.1% in the 1st quarter. Intech Investment Management LLC now owns 230,177 shares of the real estate investment trust's stock valued at $1,172,000 after buying an additional 26,607 shares during the period. Institutional investors 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.