Ready Capital (NYSE:RC) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• Ready Capital's share price hit a new 52-week low of $3.89 after B. Riley downgraded its price target from $6.00 to $4.00, maintaining a neutral rating.
• Institutional investors have increased their holdings, with Nomura Asset Management raising its position by 163.6%, reflecting growing interest in the stock despite recent downgrades.
• The company reported a loss of ($0.14) earnings per share for the last quarter, missing estimates by a significant margin and indicating operational challenges.

Ready Capital Corp (NYSE:RC - Get Free Report) reached a new 52-week low on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $4.25 to $3.75. Keefe, Bruyette & Woods currently has an underperform rating on the stock. Ready Capital traded as low as $3.89 and last traded at $3.89, with a volume of 638588 shares. The stock had previously closed at $4.07.

Several other equities research analysts have also weighed in on the company. UBS Group lowered their price objective on Ready Capital from $4.75 to $4.50 and set a "neutral" rating on the stock in a research note on Wednesday, May 21st. B. Riley lowered their price objective on Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Monday. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $5.96.

Institutional Investors Weigh In On Ready Capital

A number of large investors have recently bought and sold shares of the business. BNP Paribas Financial Markets grew its position in Ready Capital by 65.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 17,226 shares of the real estate investment trust's stock worth $75,000 after acquiring an additional 6,807 shares during the last quarter. California State Teachers Retirement System grew its position in Ready Capital by 18.0% during the 2nd quarter. California State Teachers Retirement System now owns 176,803 shares of the real estate investment trust's stock worth $773,000 after acquiring an additional 26,992 shares during the last quarter. Quantinno Capital Management LP grew its position in Ready Capital by 441.9% during the 2nd quarter. Quantinno Capital Management LP now owns 113,665 shares of the real estate investment trust's stock worth $497,000 after acquiring an additional 92,690 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Ready Capital by 9.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,924,767 shares of the real estate investment trust's stock valued at $8,411,000 after buying an additional 164,918 shares during the last quarter. Finally, The Manufacturers Life Insurance Company boosted its position in Ready Capital by 3.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 84,372 shares of the real estate investment trust's stock valued at $369,000 after buying an additional 2,905 shares during the last quarter. 55.87% of the stock is currently owned by institutional investors.

Ready Capital Price Performance

The stock has a market capitalization of $627.74 million, a P/E ratio of -2.06 and a beta of 1.47. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.78 and a current ratio of 1.61. The stock has a 50-day simple moving average of $4.35 and a 200 day simple moving average of $4.86.

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

Ready Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 13.1%. The ex-dividend date was Monday, June 30th. Ready Capital's dividend payout ratio (DPR) is presently -27.03%.

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.