Ready Capital (NYSE:RC) Hits New 52-Week Low - Here's Why

Key Points

• Ready Capital's shares hit a new 12-month low at $3.75, down from a previous close of $3.82, reflecting a struggling stock performance with over 1.3 million shares traded.
• Analysts have decreased their target prices, with Keefe, Bruyette & Woods lowering it from $4.25 to $3.75, reflecting a prevailing "underperform" sentiment among several firms.
• The company reported disappointing earnings with a significant EPS miss of ($0.14), far below expectations, leading to concerns about its financial health.

Ready Capital Corp (NYSE:RC - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $3.75 and last traded at $3.77, with a volume of 1328979 shares changing hands. The stock had previously closed at $3.82.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on RC shares. Wall Street Zen lowered shares of Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Keefe, Bruyette & Woods cut their target price on shares of Ready Capital from $4.25 to $3.75 and set an "underperform" rating on the stock in a research note on Tuesday, August 12th. UBS Group cut their target price on shares of Ready Capital from $4.50 to $4.00 and set a "neutral" rating on the stock in a research note on Wednesday. Finally, B. Riley cut their target price on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Monday, August 11th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $5.88.

Ready Capital Trading Up 7.9%

The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.76. The business's 50-day moving average is $4.29 and its two-hundred day moving average is $4.75. The firm has a market cap of $657.98 million, a P/E ratio of -2.16 and a beta of 1.47.

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 for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.13). Ready Capital had a negative net margin of 40.59% and a positive return on equity of 3.76%. The business had revenue of ($9.77) million for the quarter, compared to the consensus estimate of $167.26 million. As a group, analysts expect that Ready Capital Corp will post 0.93 earnings per share for the current fiscal year.

Ready Capital Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a $0.125 dividend. The ex-dividend date was Monday, June 30th. This represents a $0.50 annualized dividend and a yield of 12.5%. Ready Capital's dividend payout ratio is -27.03%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. B. Riley Wealth Advisors Inc. bought a new position in shares of Ready Capital in the second quarter valued at approximately $136,000. Public Sector Pension Investment Board boosted its holdings in shares of Ready Capital by 8.8% in the second quarter. Public Sector Pension Investment Board now owns 581,322 shares of the real estate investment trust's stock valued at $2,540,000 after acquiring an additional 46,848 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its holdings in shares of Ready Capital by 8.2% in the second quarter. CANADA LIFE ASSURANCE Co now owns 145,398 shares of the real estate investment trust's stock valued at $636,000 after acquiring an additional 11,061 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in shares of Ready Capital by 239.7% in the second quarter. Tower Research Capital LLC TRC now owns 14,394 shares of the real estate investment trust's stock valued at $63,000 after acquiring an additional 10,157 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its holdings in shares of Ready Capital by 65.3% in the second quarter. BNP Paribas Financial Markets now owns 17,226 shares of the real estate investment trust's stock valued at $75,000 after acquiring an additional 6,807 shares in the last quarter. 55.87% of the stock is currently owned by institutional investors.

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.