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

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

Ready Capital Price Performance

Shares of Ready Capital stock traded down $0.06 on Friday, hitting $2.94. The company’s stock had a trading volume of 5,460,592 shares, compared to its average volume of 2,324,347. Ready Capital has a 52-week low of $2.66 and a 52-week high of $7.64. 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 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 market capitalization of $482.31 million, a P/E ratio of -1.54 and a beta of 1.45.

Ready Capital Announces Dividend

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

Institutional Trading of Ready Capital

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

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on RC shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Ready Capital in a report on Wednesday, October 8th. B. Riley dropped their price objective on Ready Capital from $6.00 to $4.00 and set a “neutral” rating on the stock in a report on Monday, August 11th. Keefe, Bruyette & Woods reduced their target price on Ready Capital from $3.75 to $3.50 and set an “underperform” rating for the company in a report on Thursday, October 9th. UBS Group lowered their price target on shares of Ready Capital from $4.00 to $3.50 and set a “neutral” rating on the stock in a research note on Tuesday, October 14th. Finally, Zacks Research upgraded shares of Ready Capital from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 14th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target 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.