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 target cut by B. Riley from $6.00 to $4.00 in a research note issued to investors on Monday morning,Benzinga reports. They currently have a neutral rating on the real estate investment trust's stock. B. Riley also issued estimates for Ready Capital's Q3 2025 earnings at ($0.21) EPS, Q4 2025 earnings at ($0.05) EPS, FY2025 earnings at ($0.50) EPS and FY2026 earnings at $0.30 EPS.

A number of other research firms also recently issued reports on RC. UBS Group decreased their price objective on shares of 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 raised their price target on shares of Ready Capital from $3.75 to $4.25 and gave the company an "underperform" rating in a report on Thursday, July 10th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, Ready Capital has an average rating of "Hold" and an average price target of $5.96.

Ready Capital Stock Down 0.4%

Shares of NYSE RC traded down $0.02 during mid-day trading on Monday, reaching $3.85. The company had a trading volume of 862,763 shares, compared to its average volume of 2,438,878. Ready Capital has a twelve month low of $3.77 and a twelve month high of $8.64. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.78 and a current ratio of 1.61. The stock has a market capitalization of $631.85 million, a PE ratio of -2.08 and a beta of 1.47. The stock's 50 day moving average is $4.36 and its 200-day moving average is $4.88.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings data 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). Ready Capital had a positive return on equity of 3.76% and a negative net margin of 40.59%. The firm had revenue of ($9.77) million for the quarter, compared to analyst estimates of $167.26 million. As a group, equities analysts anticipate that Ready Capital will post 0.93 earnings per share for the current fiscal year.

Ready Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 13.0%. The ex-dividend date of this dividend was Monday, June 30th. Ready Capital's dividend payout ratio is currently -27.03%.

Institutional Investors Weigh In On Ready Capital

A number of large investors have recently modified their holdings of the stock. Sterling Capital Management LLC boosted its holdings in Ready Capital by 822.8% in the fourth quarter. Sterling Capital Management LLC now owns 5,177 shares of the real estate investment trust's stock valued at $35,000 after purchasing an additional 4,616 shares during the last quarter. Larson Financial Group LLC bought a new position in Ready Capital during the 1st quarter worth approximately $27,000. Nomura Asset Management Co. Ltd. lifted its holdings in Ready Capital by 163.6% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 5,800 shares of the real estate investment trust's stock worth $25,000 after buying an additional 3,600 shares during the last quarter. US Bancorp DE lifted its holdings in Ready Capital by 404.7% during the 1st quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock worth $31,000 after buying an additional 4,828 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. bought a new position in Ready Capital during the 1st quarter worth approximately $32,000. Institutional investors and hedge funds own 55.87% of the company's stock.

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.