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

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

Ready Capital Price Performance

Shares of Ready Capital stock traded up $0.22 on Friday, reaching $1.85. The company’s stock had a trading volume of 4,992,647 shares, compared to its average volume of 2,661,999. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 0.79. The company has a market capitalization of $299.12 million, a P/E ratio of -0.97 and a beta of 1.45. The stock has a 50-day moving average price of $2.06 and a 200-day moving average price of $2.91. Ready Capital has a 52-week low of $1.55 and a 52-week high of $6.96.

Ready Capital Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were given a $0.01 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $0.04 dividend on an annualized basis and a dividend yield of 2.2%. Ready Capital’s payout ratio is -2.09%.

Wall Street Analyst Weigh In

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

Institutional Investors Weigh In On Ready Capital

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CW Advisors LLC lifted its holdings in Ready Capital by 11.6% during 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 in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Ready Capital by 3.6% during 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 purchasing an additional 2,905 shares in the last quarter. Cerity Partners LLC raised its position in shares of Ready Capital by 29.0% during the 2nd quarter. Cerity Partners LLC now owns 15,220 shares of the real estate investment trust’s stock worth $67,000 after purchasing an additional 3,419 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Ready Capital by 65.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 17,226 shares of the real estate investment trust’s stock valued at $75,000 after buying an additional 6,807 shares in the last quarter. Finally, Deutsche Bank AG lifted its stake in Ready Capital by 6.1% in the 4th quarter. Deutsche Bank AG now owns 123,280 shares of the real estate investment trust’s stock valued at $269,000 after buying an additional 7,133 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 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.