Ready Capital (NYSE:RC) Reaches New 52-Week Low – Here’s Why

Ready Capital Co. (NYSE:RC) shares hit a new 52-week low on Monday . The company traded as low as $6.71 and last traded at $6.76, with a volume of 167197 shares. The stock had previously closed at $6.75.

Analysts Set New Price Targets

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

Ready Capital Trading Up 1.0 %

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

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

Ready Capital Cuts Dividend

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

Institutional Investors Weigh In On Ready Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in RC. Wolverine Asset Management LLC raised its stake 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 buying an additional 388,891 shares during the last quarter. Principal Financial Group Inc. grew its holdings in shares of Ready Capital by 3.3% in the third quarter. Principal Financial Group Inc. now owns 792,536 shares of the real estate investment trust’s stock worth $6,047,000 after acquiring an additional 25,545 shares during the period. United Advisor Group LLC purchased a new stake in Ready Capital during the third quarter valued at $151,000. Van ECK Associates Corp lifted its holdings 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 valued at $9,508,000 after acquiring an additional 23,970 shares during the period. Finally, State of Alaska Department of Revenue boosted its position 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 during the last quarter. Hedge funds and other institutional investors own 55.87% of the company’s stock.

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.