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 analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other equities analysts have also recently issued reports on the company. Keefe, Bruyette & Woods cut their price target on Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a report on Tuesday, August 12th. 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 research note on Wednesday, May 21st. Finally, B. Riley reduced their price objective on Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Ready Capital has an average rating of "Hold" and an average target price of $5.88.

Ready Capital Trading Up 2.0%

Shares of Ready Capital stock traded up $0.0750 on Friday, reaching $3.8550. 1,713,827 shares of the company's stock were exchanged, compared to its average volume of 2,004,033. The company has a market capitalization of $633.49 million, a P/E ratio of -2.08 and a beta of 1.47. Ready Capital has a 52 week low of $3.75 and a 52 week high of $8.64. The firm's 50-day moving average is $4.31 and its two-hundred day moving average is $4.80. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.61 and a current ratio of 1.61.

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) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13). The business 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%. Sell-side analysts predict that Ready Capital will post 0.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Sterling Capital Management LLC boosted its position in shares of Ready Capital by 822.8% during 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 buying an additional 4,616 shares during the last quarter. Larson Financial Group LLC bought a new stake in Ready Capital during the first quarter worth $27,000. Nomura Asset Management Co. Ltd. lifted its holdings in Ready Capital by 163.6% during the second quarter. Nomura Asset Management Co. Ltd. now owns 5,800 shares of the real estate investment trust's stock worth $25,000 after acquiring an additional 3,600 shares during the period. US Bancorp DE lifted its holdings in Ready Capital by 404.7% during the first quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock worth $31,000 after acquiring an additional 4,828 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in Ready Capital during the first quarter worth $32,000. Hedge funds and other institutional investors 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.