B. Riley Has Pessimistic View of Ready Capital Q3 Earnings

Key Points

• B. Riley has significantly lowered its Q3 2025 earnings per share (EPS) estimate for Ready Capital from $0.08 to ($0.21), maintaining a "Neutral" rating with a price target of $4.00.
• Ready Capital's recent earnings report showed a negative EPS of ($0.14), missing the consensus estimate, and the company has a net margin of -40.59%.
• Institutional investors hold over 55% of Ready Capital's shares, with JPMorgan Chase & Co. increasing its position by 82.7% in the last quarter.

Ready Capital Corp (NYSE:RC - Free Report) - B. Riley cut their Q3 2025 earnings per share (EPS) estimates for Ready Capital in a research note issued to investors on Monday, August 11th. B. Riley analyst R. Binner now forecasts that the real estate investment trust will post earnings of ($0.21) per share for the quarter, down from their previous estimate of $0.08. B. Riley has a "Neutral" rating and a $4.00 price objective on the stock. The consensus estimate for Ready Capital's current full-year earnings is $0.93 per share. B. Riley also issued estimates for Ready Capital's Q4 2025 earnings at ($0.05) EPS, FY2025 earnings at ($0.50) EPS and FY2026 earnings at $0.30 EPS.

Ready Capital (NYSE:RC - Get Free Report) last issued its earnings results 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 positive return on equity of 3.76% and a negative net margin of 40.59%.The firm had revenue of ($9.77) million for the quarter, compared to analyst estimates of $167.26 million.

Other research analysts also recently issued research reports about the company. UBS Group cut their price target on Ready Capital from $4.75 to $4.50 and set a "neutral" rating for the company in a research note on Wednesday, May 21st. Wall Street Zen downgraded Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, Keefe, Bruyette & Woods cut their price target on Ready Capital from $4.25 to $3.75 and set an "underperform" rating for the company in a research note on Tuesday, August 12th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $5.96.

Ready Capital Stock Performance

NYSE:RC traded up $0.0250 during trading on Thursday, reaching $3.8050. The company's stock had a trading volume of 648,826 shares, compared to its average volume of 2,424,075. The firm has a market cap of $625.26 million, a price-to-earnings 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 1.61 and a current ratio of 1.61. The firm has a 50 day moving average of $4.34 and a 200-day moving average of $4.81. Ready Capital has a 12 month low of $3.75 and a 12 month high of $8.64.

Ready Capital Dividend Announcement

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

Hedge Funds Weigh In On Ready Capital

Large investors have recently modified their holdings of the company. Nomura Asset Management Co. Ltd. raised its holdings in shares of Ready Capital by 163.6% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 5,800 shares of the real estate investment trust's stock valued at $25,000 after buying an additional 3,600 shares in the last quarter. Larson Financial Group LLC purchased a new position in shares of Ready Capital during the 1st quarter valued at about $27,000. US Bancorp DE raised its holdings in shares of Ready Capital by 404.7% during the 1st quarter. US Bancorp DE now owns 6,021 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 4,828 shares in the last quarter. Bogart Wealth LLC purchased a new position in shares of Ready Capital during the 2nd quarter valued at about $31,000. Finally, Northwestern Mutual Wealth Management Co. bought a new position in Ready Capital during the 1st quarter worth approximately $32,000. 55.87% of the stock is owned by hedge funds and other 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.