Ready Capital (NYSE:RC) Reaches New 12-Month Low - Should You Sell?

Ready Capital Co. (NYSE:RC - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $6.71 and last traded at $6.76, with a volume of 167197 shares traded. The stock had previously closed at $6.75.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on RC shares. Keefe, Bruyette & Woods dropped their price objective on Ready Capital from $8.00 to $7.75 and set an "underperform" rating on the stock in a report on Monday, August 12th. Piper Sandler reduced 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 note on Monday, September 16th. Wedbush reissued a "neutral" rating and issued a $9.00 target price on shares of Ready Capital in a research report on Monday, August 12th. Finally, BTIG Research initiated coverage on shares of Ready Capital in a research report on Friday, July 19th. They set a "neutral" rating on the stock. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $9.38.

Ready Capital Price Performance

The company has a 50-day simple moving average of $7.57 and a two-hundred day simple moving average of $8.25. The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of -17.82 and a beta of 1.42. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.69 and a quick ratio of 1.69.

Ready Capital (NYSE:RC - Get Free Report) last announced its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.07 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.19). Ready Capital had a negative net margin of 5.67% and a positive return on equity of 7.32%. The business had revenue of $234.12 million for the quarter, compared to the consensus estimate of $61.77 million. During the same period in the previous year, the firm earned $0.35 EPS. On average, equities research analysts predict that Ready Capital Co. will post 0.98 earnings per share for the current year.

Ready Capital Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 31st. Stockholders of record on Monday, September 30th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.90%. The ex-dividend date was Monday, September 30th. Ready Capital's dividend payout ratio is currently -263.16%.

Hedge Funds Weigh In On Ready Capital

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in Ready Capital by 7.1% during the fourth quarter. Vanguard Group Inc. now owns 11,163,763 shares of the real estate investment trust's stock valued at $114,429,000 after purchasing an additional 735,949 shares during the last quarter. Norden Group LLC boosted its stake in shares of Ready Capital by 24.7% during the 1st quarter. Norden Group LLC now owns 18,309 shares of the real estate investment trust's stock worth $167,000 after acquiring an additional 3,630 shares in the last quarter. Janney Montgomery Scott LLC acquired a new position in shares of Ready Capital in the 1st quarter worth $307,000. Jennison Associates LLC raised its position in shares of Ready Capital by 92.2% during the first quarter. Jennison Associates LLC now owns 108,946 shares of the real estate investment trust's stock worth $995,000 after purchasing an additional 52,274 shares during the period. Finally, Texas Permanent School Fund Corp lifted its holdings in shares of Ready Capital by 1.3% during the first quarter. Texas Permanent School Fund Corp now owns 138,085 shares of the real estate investment trust's stock valued at $1,261,000 after purchasing an additional 1,718 shares during the last quarter. 55.87% of the stock is currently owned by institutional investors and hedge funds.

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.