Ready Capital (NYSE:RC) Releases Earnings Results, Misses Estimates By $0.96 EPS

Ready Capital (NYSE:RC) issued its quarterly earnings results on Thursday. The real estate investment trust reported ($0.94) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.96), Zacks reports. Ready Capital had a negative return on equity of 6.93% and a negative net margin of 47.30%.The business had revenue of $85.43 million for the quarter, compared to the consensus estimate of $149.14 million.

Ready Capital Stock Down 1.8%

Shares of NYSE RC traded down $0.06 during trading hours on Friday, hitting $2.94. 5,460,592 shares of the stock were exchanged, compared to its average volume of 2,324,347. Ready Capital has a 12 month low of $2.66 and a 12 month high of $7.64. The firm has a fifty day moving average price of $3.69 and a 200-day moving average price of $4.09. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.76. The company has a market cap of $482.31 million, a PE ratio of -1.54 and a beta of 1.45.

Ready Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th were given a $0.125 dividend. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 17.0%. Ready Capital’s payout ratio is presently -27.03%.

Institutional Trading of Ready Capital

A number of institutional investors have recently made changes to their positions in RC. CW Advisors LLC grew its stake in Ready Capital by 11.6% during the 2nd quarter. CW Advisors LLC now owns 27,590 shares of the real estate investment trust’s stock worth $121,000 after buying an additional 2,878 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Ready Capital by 3.6% in the second quarter. The Manufacturers Life Insurance Company now owns 84,372 shares of the real estate investment trust’s stock worth $369,000 after acquiring an additional 2,905 shares in the last quarter. Cerity Partners LLC grew its stake in shares of Ready Capital by 29.0% during the second quarter. Cerity Partners LLC now owns 15,220 shares of the real estate investment trust’s stock worth $67,000 after acquiring an additional 3,419 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Ready Capital by 65.3% during the second quarter. BNP Paribas Financial Markets now owns 17,226 shares of the real estate investment trust’s stock valued at $75,000 after acquiring an additional 6,807 shares in the last quarter. Finally, Guggenheim Capital LLC raised its position in shares of Ready Capital by 5.5% in the 2nd quarter. Guggenheim Capital LLC now owns 164,349 shares of the real estate investment trust’s stock valued at $718,000 after purchasing an additional 8,507 shares during the last quarter. Institutional investors and hedge funds own 55.87% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. UBS Group decreased their target price on Ready Capital from $4.00 to $3.50 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Keefe, Bruyette & Woods decreased their price target on shares of Ready Capital from $3.75 to $3.50 and set an “underperform” rating for the company in a research note on Thursday, October 9th. Wall Street Zen downgraded Ready Capital from a “hold” rating to a “sell” rating in a report on Saturday, August 16th. Zacks Research upgraded Ready Capital from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 14th. Finally, B. Riley decreased their price objective on Ready Capital from $6.00 to $4.00 and set a “neutral” rating for the company in a report on Monday, August 11th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $5.30.

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.