Ready Capital (NYSE:RC) Hits New 1-Year Low on Analyst Downgrade

Ready Capital Co. (NYSE:RC - Get Free Report)'s stock price reached a new 52-week low during trading on Thursday after UBS Group lowered their price target on the stock from $5.00 to $4.75. UBS Group currently has a neutral rating on the stock. Ready Capital traded as low as $4.19 and last traded at $4.21, with a volume of 3525273 shares. The stock had previously closed at $4.45.

RC has been the subject of a number of other research reports. B. Riley reiterated a "neutral" rating and issued a $10.00 price objective (down previously from $12.00) on shares of Ready Capital in a report on Tuesday, January 7th. Citizens Jmp downgraded Ready Capital from an "outperform" rating to a "market perform" rating in a research report on Monday, March 3rd. Wedbush restated a "neutral" rating and issued a $6.00 target price (down from $8.00) on shares of Ready Capital in a report on Tuesday, March 4th. Finally, Keefe, Bruyette & Woods reduced their price target on Ready Capital from $6.25 to $4.00 and set an "underperform" rating on the stock in a report on Wednesday, March 5th. One analyst has rated the stock with a sell rating, seven have assigned 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 an average target price of $7.04.

Insider Activity

In related news, CEO Thomas E. Capasse bought 10,000 shares of the company's stock in a transaction that occurred on Wednesday, March 5th. The stock was purchased at an average price of $4.80 per share, for a total transaction of $48,000.00. Following the acquisition, the chief executive officer now owns 319,925 shares of the company's stock, valued at approximately $1,535,640. This trade represents a 3.23 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 1.09% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Kingswood Wealth Advisors LLC acquired a new position in Ready Capital during the 1st quarter worth about $173,000. Insigneo Advisory Services LLC purchased a new position in shares of Ready Capital in the first quarter valued at approximately $75,000. Bfsg LLC acquired a new position in shares of Ready Capital in the first quarter valued at approximately $52,000. Sowell Financial Services LLC increased its stake in 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. Finally, Sound Income Strategies LLC lifted its holdings in Ready Capital by 9,654.5% during the 1st quarter. Sound Income Strategies LLC now owns 60,478 shares of the real estate investment trust's stock worth $308,000 after buying an additional 59,858 shares in the last quarter. 55.87% of the stock is currently owned by hedge funds and other institutional investors.

Ready Capital Price Performance

The company's 50-day simple moving average is $5.32 and its 200 day simple moving average is $6.44. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.67 and a current ratio of 1.67. The company has a market cap of $752.61 million, a PE ratio of -6.26 and a beta of 1.23.

Ready Capital Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Monday, March 31st will be paid a dividend of $0.125 per share. The ex-dividend date of this dividend is Monday, March 31st. This represents a $0.50 annualized dividend and a yield of 11.42%. Ready Capital's payout ratio is -18.94%.

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.