Ready Capital (NYSE:RC) Reaches New 12-Month Low Following Analyst Downgrade

Ready Capital Co. (NYSE:RC)’s share price hit a new 52-week low during mid-day trading 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 changing hands. The stock had previously closed at $6.56.

Several other brokerages also recently commented on RC. B. Riley reaffirmed a “neutral” rating and set a $10.00 price objective (down from $12.00) on shares of Ready Capital in a research note on Tuesday, January 7th. JMP Securities dropped their price objective on Ready Capital from $10.50 to $9.50 and set a “market outperform” rating for the company in a report on Thursday, December 12th. UBS Group dropped their price target on Ready Capital from $8.50 to $7.50 and set a “neutral” rating for the company in a research note on Friday, November 15th. Finally, Piper Sandler dropped their target price on shares of Ready Capital from $9.50 to $8.00 and set a “neutral” rating for the company 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’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $8.61.

Hedge Funds Weigh In On Ready Capital

Several large investors have recently added to or reduced their stakes in the company. State Street Corp lifted its stake in shares of Ready Capital by 4.8% during the 3rd quarter. State Street Corp now owns 6,315,147 shares of the real estate investment trust’s stock valued at $49,746,000 after buying an additional 287,068 shares in the last quarter. Geode Capital Management LLC grew its position in shares of 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 worth $29,292,000 after purchasing an additional 150,479 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Ready Capital by 11.7% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,868,580 shares of the real estate investment trust’s stock worth $14,257,000 after purchasing an additional 195,663 shares in the last quarter. Clear Harbor Asset Management LLC boosted its stake in Ready Capital by 84.0% in the 3rd quarter. Clear Harbor Asset Management LLC now owns 1,440,250 shares of the real estate investment trust’s stock worth $10,989,000 after purchasing an additional 657,465 shares during the period. Finally, Van ECK Associates Corp lifted its holdings in shares of Ready Capital by 1.8% in the third quarter. Van ECK Associates Corp now owns 1,366,040 shares of the real estate investment trust’s stock worth $9,508,000 after buying an additional 23,970 shares in the last quarter. Hedge funds and other institutional investors own 55.87% of the company’s stock.

Ready Capital Stock Performance

The firm’s 50 day simple moving average is $7.16 and its 200 day simple moving average is $7.75. The company has a quick ratio of 1.67, a current ratio of 1.67 and a debt-to-equity ratio of 0.54.

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 issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.99%. The ex-dividend date of this dividend is Tuesday, December 31st. Ready Capital’s dividend payout ratio (DPR) is presently -142.86%.

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.