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) released its quarterly earnings data on Thursday. The real estate investment trust reported ($0.14) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13), Zacks reports. The firm had revenue of ($9.77) million for the quarter, compared to analyst estimates of $167.26 million. Ready Capital had a positive return on equity of 3.68% and a negative net margin of 40.59%.

Ready Capital Stock Down 3.8%

Ready Capital stock traded down $0.16 during trading on Friday, reaching $4.07. 2,424,484 shares of the company's stock were exchanged, compared to its average volume of 1,770,929. The company's 50-day moving average is $4.39 and its two-hundred day moving average is $4.95. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.78 and a current ratio of 1.78. Ready Capital has a 52-week low of $3.92 and a 52-week high of $8.88. The firm has a market cap of $693.96 million, a price-to-earnings ratio of -2.20 and a beta of 1.47.

Ready Capital Announces Dividend

The firm also recently declared 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 dividend on an annualized basis and a yield of 12.3%. The ex-dividend date of this dividend was Monday, June 30th. Ready Capital's dividend payout ratio is -27.03%.

Institutional Trading of Ready Capital

Institutional investors have recently added to or reduced their stakes in the business. United Services Automobile Association purchased a new stake in Ready Capital during the 1st quarter worth $59,000. Dynamic Technology Lab Private Ltd purchased a new position in Ready Capital in the 1st quarter valued at about $89,000. Strs Ohio purchased a new position in Ready Capital in the 1st quarter valued at about $154,000. Intech Investment Management LLC boosted its position in 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 last quarter. Finally, Focus Partners Wealth boosted its position in 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 last quarter. 55.87% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. UBS Group dropped their price objective on Ready Capital from $4.75 to $4.50 and set a "neutral" rating for the company in a report on Wednesday, May 21st. Keefe, Bruyette & Woods upped their price objective on Ready Capital from $3.75 to $4.25 and gave the stock an "underperform" rating in a report on Thursday, July 10th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $7.04.

Ready Capital Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.