Ready Capital (NYSE:RC) Stock Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Ready Capital shares fell below their 200-day moving average, trading as low as $1.6350 and last changing hands at $1.6450. The move comes as the stock remains under technical pressure, with its 50-day average at $1.72 and 200-day average at $1.83.
• Analyst sentiment is weak: UBS cut its price target to $2.00 and kept a neutral rating, while Zacks downgraded the stock to strong sell. Overall, the stock carries an average rating of “Reduce” with a consensus price target of $2.62.
• Ready Capital recently reported a miss on quarterly EPS, posting a loss of $0.33 per share versus expectations for a $0.15 loss, though revenue came in above estimates. The company also declared a quarterly dividend of $0.01 per share, implying a 2.4% annualized yield.

Shares of Ready Capital Corp (NYSE:RC - Get Free Report) crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $1.83 and traded as low as $1.6350. Ready Capital shares last traded at $1.6450, with a volume of 1,568,371 shares.

Wall Street Analysts Forecast Growth

RC has been the topic of a number of research analyst reports. UBS Group decreased their target price on Ready Capital from $2.50 to $2.00 and set a "neutral" rating on the stock in a research report on Thursday. Zacks Research cut Ready Capital from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ready Capital in a research note on Tuesday, June 2nd. Three analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $2.62.

Ready Capital Stock Up 1.5%

The company has a debt-to-equity ratio of 0.95, a current ratio of 1.60 and a quick ratio of 1.60. The firm's 50-day moving average price is $1.72 and its 200 day moving average price is $1.83. The firm has a market capitalization of $271.79 million, a price-to-earnings ratio of -0.52 and a beta of 1.43.

Ready Capital (NYSE:RC - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The real estate investment trust reported ($0.33) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.15) by ($0.18). Ready Capital had a negative return on equity of 14.69% and a negative net margin of 102.10%.The company had revenue of $130.55 million for the quarter, compared to analyst estimates of $68.67 million. Sell-side analysts expect that Ready Capital Corp will post -0.94 EPS for the current year.

Ready Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.01 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.04 annualized dividend and a yield of 2.4%. Ready Capital's dividend payout ratio (DPR) is presently -1.26%.

Hedge Funds Weigh In On Ready Capital

A number of institutional investors have recently made changes to their positions in RC. Allied Private Wealth LLC acquired a new stake in shares of Ready Capital during the second quarter valued at $66,000. Bank of America Corp DE raised its stake in Ready Capital by 65.2% in the 1st quarter. Bank of America Corp DE now owns 446,400 shares of the real estate investment trust's stock valued at $723,000 after purchasing an additional 176,229 shares during the last quarter. Royal Bank of Canada raised its stake in Ready Capital by 204.9% in the 1st quarter. Royal Bank of Canada now owns 24,888 shares of the real estate investment trust's stock valued at $40,000 after purchasing an additional 16,724 shares during the last quarter. Cetera Investment Advisers lifted its holdings in Ready Capital by 47.9% in the 1st quarter. Cetera Investment Advisers now owns 40,134 shares of the real estate investment trust's stock valued at $65,000 after purchasing an additional 12,998 shares in the last quarter. Finally, SG Americas Securities LLC lifted its holdings in Ready Capital by 48.0% in the 1st quarter. SG Americas Securities LLC now owns 56,748 shares of the real estate investment trust's stock valued at $92,000 after purchasing an additional 18,396 shares in the last quarter. 55.87% of the stock is owned by institutional investors and hedge funds.

About Ready Capital

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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