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 (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.02, FiscalAI reports. The firm 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 Stock Down 0.9%

Shares of RC traded down $0.02 during mid-day trading on Thursday, reaching $1.65. 3,002,842 shares of the stock traded hands, compared to its average volume of 2,175,613. The stock has a fifty day simple moving average of $2.06 and a 200 day simple moving average of $2.91. Ready Capital has a 12-month low of $1.61 and a 12-month high of $6.96. 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 firm has a market cap of $266.70 million, a price-to-earnings ratio of -0.86 and a beta of 1.45.

Ready Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were paid 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 dividend yield of 2.4%. Ready Capital’s dividend payout ratio (DPR) is currently -2.09%.

Institutional Investors Weigh In On Ready Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP boosted its position in Ready Capital by 4,494.6% in the 3rd quarter. Quarry LP now owns 9,373 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 9,169 shares during the last quarter. Ausdal Financial Partners Inc. purchased a new stake in shares of Ready Capital during the third quarter worth about $39,000. Franklin Resources Inc. acquired a new position in shares of Ready Capital in the third quarter worth about $44,000. M&T Bank Corp acquired a new position in shares of Ready Capital in the second quarter worth about $50,000. Finally, United Services Automobile Association purchased a new position in Ready Capital in the first quarter valued at about $59,000. Hedge funds and other institutional investors own 55.87% of the company’s stock.

Analyst Upgrades and Downgrades

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

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.