Ready Capital (NYSE:RC) Stock Passes Below 200 Day Moving Average - What's Next?

Key Points

• Ready Capital shares fell below their 200-day moving average of $1.74, trading as low as $1.6850 before closing near $1.71.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with three Holds and two Sells, and an average price target of $2.17.
• The REIT reported a quarterly loss of $0.47 per share, slightly beating estimates, while maintaining a $0.01 quarterly dividend, equal to a 2.3% annualized yield.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $1.74 and traded as low as $1.6850. Ready Capital shares last traded at $1.7099, with a volume of 1,276,987 shares.

Analyst Ratings Changes

RC has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ready Capital in a research note on Tuesday, June 2nd. UBS Group decreased their price target on Ready Capital from $2.50 to $2.00 and set a "neutral" rating for the company in a research note on Thursday, July 16th. Finally, Zacks Research raised Ready Capital from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 4th. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $2.17.

Ready Capital Price Performance

The stock has a market capitalization of $282.46 million, a price-to-earnings ratio of -0.49 and a beta of 1.45. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.97. The business has a 50-day simple moving average of $1.65 and a two-hundred day simple moving average of $1.74.

Ready Capital (NYSE:RC - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported ($0.47) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.48) by $0.01. Ready Capital had a negative return on equity of 16.78% and a negative net margin of 131.76%.The firm had revenue of $151.87 million during the quarter, compared to analyst estimates of $16.41 million. As a group, research analysts predict that Ready Capital Corp will post -0.99 earnings per share for the current fiscal year.

Ready Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.04 annualized dividend and a yield of 2.3%. Ready Capital's dividend payout ratio (DPR) is currently -1.15%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Dynamic Technology Lab Private Ltd acquired a new stake in Ready Capital in the 1st quarter valued at about $89,000. United Services Automobile Association bought a new position in shares of Ready Capital during the 1st quarter valued at about $59,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Ready Capital by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 442,432 shares of the real estate investment trust's stock worth $2,252,000 after purchasing an additional 9,892 shares during the last quarter. Focus Partners Wealth grew its stake in shares of Ready Capital by 13.1% in the 1st quarter. Focus Partners Wealth now owns 263,820 shares of the real estate investment trust's stock worth $1,343,000 after purchasing an additional 30,477 shares during the last quarter. Finally, Intech Investment Management LLC raised its holdings in shares of Ready Capital by 13.1% in the 1st quarter. Intech Investment Management LLC now owns 230,177 shares of the real estate investment trust's stock worth $1,172,000 after purchasing an additional 26,607 shares in the last quarter. 55.87% of the stock is owned by institutional investors and hedge funds.

Ready Capital Company Profile

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.

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