Ready Capital (NYSE:RC) Reaches New 12-Month Low – What’s Next?

Ready Capital Co. (NYSE:RC)’s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $6.71 and last traded at $6.76, with a volume of 167197 shares changing hands. The stock had previously closed at $6.75.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. BTIG Research initiated coverage on shares of Ready Capital in a research report on Friday, July 19th. They issued a “neutral” rating on the stock. Wedbush reissued a “neutral” rating and issued a $9.00 target price on shares of Ready Capital in a research note on Monday, August 12th. Piper Sandler reduced their price target on Ready Capital from $9.50 to $8.00 and set a “neutral” rating on the stock in a research report on Monday, September 16th. Finally, Keefe, Bruyette & Woods decreased their price target on Ready Capital from $8.00 to $7.75 and set an “underperform” rating on the stock in a research note on Monday, August 12th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $9.38.

Ready Capital Price Performance

The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 0.52. The business has a 50-day simple moving average of $7.51 and a 200 day simple moving average of $8.23.

Ready Capital (NYSE:RC) last announced its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.07 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.19). The business had revenue of $234.12 million for the quarter, compared to the consensus estimate of $61.77 million. Ready Capital had a negative net margin of 5.67% and a positive return on equity of 7.32%. During the same quarter in the prior year, the company earned $0.35 EPS. Equities research analysts forecast that Ready Capital Co. will post 0.98 EPS for the current fiscal year.

Ready Capital Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 31st. Stockholders of record on Monday, September 30th were given a $0.25 dividend. The ex-dividend date was Monday, September 30th. This represents a $1.00 annualized dividend and a dividend yield of 14.76%. Ready Capital’s dividend payout ratio is -263.16%.

Hedge Funds Weigh In On Ready Capital

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wolverine Asset Management LLC boosted its position in Ready Capital by 2,902.2% during the 3rd quarter. Wolverine Asset Management LLC now owns 402,291 shares of the real estate investment trust’s stock valued at $3,069,000 after acquiring an additional 388,891 shares in the last quarter. Principal Financial Group Inc. lifted its stake in shares of Ready Capital by 3.3% in the 3rd quarter. Principal Financial Group Inc. now owns 792,536 shares of the real estate investment trust’s stock valued at $6,047,000 after purchasing an additional 25,545 shares during the period. United Advisor Group LLC bought a new stake in shares of Ready Capital during the third quarter valued at approximately $151,000. Van ECK Associates Corp grew its stake in Ready Capital by 1.8% in the third quarter. Van ECK Associates Corp now owns 1,366,040 shares of the real estate investment trust’s stock worth $9,508,000 after purchasing an additional 23,970 shares during the period. Finally, State of Alaska Department of Revenue raised its holdings in Ready Capital by 5.2% in the third quarter. State of Alaska Department of Revenue now owns 95,992 shares of the real estate investment trust’s stock worth $732,000 after purchasing an additional 4,775 shares in the last quarter. Hedge funds and other institutional investors own 55.87% of the company’s stock.

About Ready Capital

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.