Ready Capital (NYSE:RC) Price Target Lowered to $3.50 at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods has lowered the price target for Ready Capital (NYSE: RC) from $3.75 to $3.50 and maintains an "underperform" rating.
• Multiple analysts have cut their price targets for Ready Capital recently, with a current consensus price target of $5.40 and varying ratings from "Buy" to "Sell."
• Ready Capital's stock is currently trading at $3.45, reflecting a 4.6% drop, and the company reported a significant earnings miss with $(0.14) EPS for the last quarter.

Ready Capital (NYSE:RC - Get Free Report) had its price target decreased by stock analysts at Keefe, Bruyette & Woods from $3.75 to $3.50 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an "underperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 1.60% from the stock's current price.

RC has been the topic of several other research reports. B. Riley cut their target price on Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Monday, August 11th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ready Capital in a research note on Wednesday. UBS Group decreased their price target on Ready Capital from $4.50 to $4.00 and set a "neutral" rating for the company in a research note on Wednesday, August 20th. Finally, Wall Street Zen lowered Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $5.40.

Ready Capital Stock Down 4.6%

Shares of RC stock traded down $0.17 on Thursday, hitting $3.45. The stock had a trading volume of 1,603,078 shares, compared to its average volume of 2,411,152. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.61 and a current ratio of 1.61. The stock's 50 day moving average is $4.07 and its 200-day moving average is $4.34. The firm has a market capitalization of $566.12 million, a price-to-earnings ratio of -1.87 and a beta of 1.45. Ready Capital has a 52-week low of $3.44 and a 52-week high of $7.64.

Ready Capital (NYSE:RC - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.13). The firm had revenue of ($9.77) million for the quarter, compared to the consensus estimate 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 expect that Ready Capital will post 0.93 earnings per share for the current year.

Hedge Funds Weigh In On Ready Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RC. Illinois Municipal Retirement Fund raised its holdings in shares of Ready Capital by 27.6% in the 1st quarter. Illinois Municipal Retirement Fund now owns 116,462 shares of the real estate investment trust's stock worth $593,000 after buying an additional 25,198 shares in the last quarter. Sowell Financial Services LLC grew its position in shares of Ready Capital by 14.3% during the 1st quarter. Sowell Financial Services LLC now owns 52,763 shares of the real estate investment trust's stock worth $269,000 after buying an additional 6,591 shares during the period. Cambridge Investment Research Advisors Inc. grew its holdings in Ready Capital by 40.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 79,072 shares of the real estate investment trust's stock worth $402,000 after acquiring an additional 22,797 shares during the period. Sound Income Strategies LLC grew its stake in shares of Ready Capital by 9,654.5% during the first quarter. Sound Income Strategies LLC now owns 60,478 shares of the real estate investment trust's stock worth $308,000 after purchasing an additional 59,858 shares during the period. Finally, Wolverine Asset Management LLC grew its position in shares of Ready Capital by 152.5% during the 1st quarter. Wolverine Asset Management LLC now owns 555,556 shares of the real estate investment trust's stock worth $2,828,000 after buying an additional 335,502 shares during the period. Institutional investors and hedge funds 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.

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