B. Riley Cuts Ready Capital (NYSE:RC) Price Target to $4.00

Key Points

• Analysts at B. Riley have reduced Ready Capital's price target from $6.00 to $4.00, maintaining a "neutral" rating, which indicates a potential downside of 1.72% from its current price.
• Ready Capital reported a disappointing quarterly earnings result with an EPS of (0.14), missing analysts' expectations by ($0.13) and generating significant revenue losses.
• A majority of analysts rate Ready Capital stock as a "Hold", with a consensus target price of $6.04 and only one analyst giving it a "buy" rating.

Ready Capital (NYSE:RC - Free Report) had its price objective lowered by B. Riley from $6.00 to $4.00 in a research report report published on Monday morning,Benzinga reports. The brokerage currently has a neutral rating on the real estate investment trust's stock.

Several other research analysts have also recently issued reports on the stock. Keefe, Bruyette & Woods increased their target price on shares of Ready Capital from $3.75 to $4.25 and gave the stock an "underperform" rating in a report on Thursday, July 10th. UBS Group dropped their target price on shares of Ready Capital from $4.75 to $4.50 and set a "neutral" rating on the stock in a report on Wednesday, May 21st. One analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, Ready Capital has an average rating of "Hold" and a consensus price target of $5.96.

Ready Capital Trading Up 1.6%

RC stock traded up $0.06 during trading on Monday, hitting $3.84. The company had a trading volume of 2,739,433 shares, compared to its average volume of 1,906,242. The firm has a market capitalization of $654.75 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 company has a 50 day simple moving average of $4.38 and a 200-day simple moving average of $4.91. The company has a quick ratio of 1.78, a current ratio of 1.61 and a debt-to-equity ratio of 0.76.

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

Ready Capital Dividend Announcement

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

Institutional Trading of Ready Capital

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Ready Capital by 0.7% during the 1st 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 boosted its stake in Ready Capital by 1.5% during the 2nd quarter. Geode Capital Management LLC now owns 4,023,581 shares of the real estate investment trust's stock worth $17,585,000 after purchasing an additional 58,899 shares during the last quarter. Invesco Ltd. boosted its stake in Ready Capital by 16.1% during the 1st quarter. Invesco Ltd. now owns 3,618,181 shares of the real estate investment trust's stock worth $18,417,000 after purchasing an additional 502,162 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Ready Capital by 0.4% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,276,719 shares of the real estate investment trust's stock worth $11,588,000 after purchasing an additional 10,134 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Ready Capital by 5.2% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,018,413 shares of the real estate investment trust's stock worth $13,766,000 after purchasing an additional 98,895 shares during the last quarter. 55.87% of the stock is currently owned by institutional investors and hedge funds.

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.