Ready Capital (NYSE:RC) Issues Earnings Results, Beats Estimates By $0.02 EPS

Ready Capital (NYSE:RC) posted its quarterly earnings results on Thursday. The real estate investment trust reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.02, FiscalAI reports. The business had revenue of $207.55 million during the quarter, compared to the consensus estimate of $133.50 million. Ready Capital had a negative return on equity of 7.02% and a negative net margin of 47.30%.

Ready Capital Trading Down 0.9%

Shares of RC traded down $0.02 during midday trading on Thursday, hitting $1.65. The stock had a trading volume of 3,002,842 shares, compared to its average volume of 2,175,613. Ready Capital has a 1 year low of $1.61 and a 1 year high of $6.96. The firm has a market cap of $266.70 million, a PE ratio of -0.86 and a beta of 1.45. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.56 and a quick ratio of 1.56. The stock’s 50 day moving average is $2.06 and its 200 day moving average is $2.91.

Ready Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Wednesday, December 31st were given a dividend of $0.01 per share. The ex-dividend date was Wednesday, December 31st. This represents a $0.04 dividend on an annualized basis and a yield of 2.4%. Ready Capital’s payout ratio is -2.09%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on RC shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Ready Capital in a report on Thursday, January 22nd. Piper Sandler reduced their target price on Ready Capital from $3.50 to $2.50 and set a “neutral” rating on the stock in a report on Monday, December 22nd. UBS Group dropped their price target on Ready Capital from $3.50 to $2.75 and set a “neutral” rating for the company in a research note on Friday, November 14th. Finally, Keefe, Bruyette & Woods cut their price target on Ready Capital from $3.50 to $2.50 and set an “underperform” rating for the company in a report on Wednesday, November 12th. Six research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $3.55.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Private Management Group Inc. grew its stake in shares of Ready Capital by 197.0% during the fourth quarter. Private Management Group Inc. now owns 4,806,088 shares of the real estate investment trust’s stock valued at $10,477,000 after buying an additional 3,188,135 shares during the last quarter. Marshall Wace LLP purchased a new position in Ready Capital during the 2nd quarter valued at $6,542,000. Invesco Ltd. grew its position in Ready Capital by 21.2% in the 3rd quarter. Invesco Ltd. now owns 4,239,678 shares of the real estate investment trust’s stock valued at $16,408,000 after acquiring an additional 742,226 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Ready Capital by 116.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 771,379 shares of the real estate investment trust’s stock worth $1,682,000 after purchasing an additional 415,054 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in shares of Ready Capital by 14.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,249,324 shares of the real estate investment trust’s stock worth $7,084,000 after purchasing an additional 402,173 shares during the last quarter. Hedge funds and other institutional investors own 55.87% of the company’s stock.

About Ready Capital

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.