Ready Capital (NYSE:RC) Cut to Sell at Wall Street Zen

Key Points

• Ready Capital has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, with several other analysts also lowering their price targets on the stock.
• The company's last earnings report showed a significant loss, with an EPS of ($0.14) missing the consensus estimate by ($0.13), and a revenue of only ($9.77) million against an expected $167.26 million.
• Currently, 55.87% of Ready Capital's stock is held by institutional investors, highlighting active interest from larger investment entities.

Ready Capital (NYSE:RC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

A number of other equities analysts have also recently commented on the company. B. Riley reduced their target price on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a report on Monday, August 11th. Keefe, Bruyette & Woods dropped their price objective on Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a report on Tuesday, August 12th. 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 report on Wednesday, May 21st. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Ready Capital currently has an average rating of "Hold" and an average price target of $5.96.

Ready Capital Price Performance

Shares of Ready Capital stock traded down $0.0050 on Friday, reaching $3.7750. The company's stock had a trading volume of 792,635 shares, compared to its average volume of 2,425,169. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $620.33 million, a P/E ratio of -2.04 and a beta of 1.47. The stock has a 50-day moving average price of $4.34 and a 200-day moving average price of $4.81. Ready Capital has a 52-week low of $3.75 and a 52-week high of $8.64.

Ready Capital (NYSE:RC - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported ($0.14) earnings per share for the quarter, missing analysts' consensus estimates 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 company had revenue of ($9.77) million for the quarter, compared to analyst estimates of $167.26 million. Analysts expect that Ready Capital will post 0.93 EPS for the current year.

Institutional Trading of Ready Capital

Several hedge funds have recently bought and sold shares of the company. Shorepoint Capital Partners LLC grew its holdings in Ready Capital by 2.4% in the 4th quarter. Shorepoint Capital Partners LLC now owns 64,500 shares of the real estate investment trust's stock worth $440,000 after buying an additional 1,500 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Ready Capital by 6.1% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 45,288 shares of the real estate investment trust's stock worth $231,000 after acquiring an additional 2,606 shares during the period. CW Advisors LLC grew its stake in shares of Ready Capital by 11.6% in the second quarter. CW Advisors LLC now owns 27,590 shares of the real estate investment trust's stock worth $121,000 after purchasing an additional 2,878 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Ready Capital by 3.6% during the second quarter. The Manufacturers Life Insurance Company now owns 84,372 shares of the real estate investment trust's stock valued at $369,000 after purchasing an additional 2,905 shares during the period. Finally, Cerity Partners LLC raised its stake in shares of Ready Capital by 29.0% during the second quarter. Cerity Partners LLC now owns 15,220 shares of the real estate investment trust's stock valued at $67,000 after purchasing an additional 3,419 shares in the last quarter. 55.87% of the stock is currently owned by institutional investors.

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.