Ready Capital (NYSE:RC) Reaches New 1-Year Low After Analyst Downgrade

Ready Capital Co. (NYSE:RC) shares reached a new 52-week low on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $6.75 to $6.25. Keefe, Bruyette & Woods currently has an underperform rating on the stock. Ready Capital traded as low as $6.45 and last traded at $6.61, with a volume of 1253510 shares. The stock had previously closed at $6.56.

Several other analysts have also weighed in on the stock. B. Riley reiterated a “neutral” rating and set a $10.00 target price (down previously from $12.00) on shares of Ready Capital in a research note on Tuesday, January 7th. JMP Securities dropped their target price on Ready Capital from $10.50 to $9.50 and set a “market outperform” rating on the stock in a research report on Thursday, December 12th. UBS Group lowered their price target on shares of Ready Capital from $8.50 to $7.50 and set a “neutral” rating for the company in a research report on Friday, November 15th. Finally, Piper Sandler cut their price objective on shares of Ready Capital from $9.50 to $8.00 and set a “neutral” rating on the stock in a research report on Monday, September 16th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $8.61.

Institutional Trading of Ready Capital

Institutional investors have recently made changes to their positions in the stock. Seed Wealth Management Inc. raised its holdings in Ready Capital by 93.8% during the fourth quarter. Seed Wealth Management Inc. now owns 24,800 shares of the real estate investment trust’s stock worth $169,000 after purchasing an additional 12,000 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Ready Capital by 50.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 336,773 shares of the real estate investment trust’s stock worth $2,570,000 after buying an additional 112,934 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Ready Capital by 3.3% in the third quarter. Principal Financial Group Inc. now owns 792,536 shares of the real estate investment trust’s stock valued at $6,047,000 after buying an additional 25,545 shares during the period. Geode Capital Management LLC boosted its stake in Ready Capital by 4.1% during the third quarter. Geode Capital Management LLC now owns 3,838,284 shares of the real estate investment trust’s stock valued at $29,292,000 after buying an additional 150,479 shares in the last quarter. Finally, Barclays PLC raised its position in Ready Capital by 205.9% in the third quarter. Barclays PLC now owns 484,986 shares of the real estate investment trust’s stock worth $3,699,000 after acquiring an additional 326,467 shares in the last quarter. 55.87% of the stock is owned by institutional investors and hedge funds.

Ready Capital Price Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 1.67 and a quick ratio of 1.67. The stock’s fifty day simple moving average is $7.16 and its two-hundred day simple moving average is $7.75.

Ready Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Investors of record on Tuesday, December 31st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 14.99%. The ex-dividend date is Tuesday, December 31st. Ready Capital’s dividend payout ratio is presently -142.86%.

Ready Capital Company Profile

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.