Ready Capital (NYSE:RC) Hits New 1-Year Low – Here’s Why

Ready Capital Co. (NYSE:RC) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $5.27 and last traded at $5.19, with a volume of 1391272 shares changing hands. The stock had previously closed at $6.93.

Analyst Ratings Changes

RC has been the subject of several recent research reports. Citizens Jmp lowered Ready Capital from an “outperform” rating to a “market perform” rating in a research report on Monday. JMP Securities reduced their target price on shares of Ready Capital from $10.50 to $9.50 and set a “market outperform” rating for the company in a report on Thursday, December 12th. Keefe, Bruyette & Woods decreased their price target on shares of Ready Capital from $6.25 to $4.00 and set an “underperform” rating for the company in a research report on Wednesday. Wedbush reaffirmed a “neutral” rating and issued a $6.00 price objective (down previously from $8.00) on shares of Ready Capital in a research report on Tuesday. Finally, UBS Group decreased their target price 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. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $7.86.

Ready Capital Price Performance

The company has a quick ratio of 1.67, a current ratio of 1.67 and a debt-to-equity ratio of 0.54. The firm has a market cap of $835.07 million, a PE ratio of -7.08 and a beta of 1.43. The stock has a 50 day moving average price of $6.73 and a two-hundred day moving average price of $7.23.

Ready Capital Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Monday, March 31st will be given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 10.09%. The ex-dividend date is Monday, March 31st. Ready Capital’s dividend payout ratio is presently -142.86%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Ready Capital by 7.3% in the 4th quarter. Vanguard Group Inc. now owns 11,366,828 shares of the real estate investment trust’s stock valued at $77,522,000 after acquiring an additional 768,891 shares during the period. State Street Corp grew its stake in 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 purchasing an additional 287,068 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Ready Capital by 4.1% in 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 purchasing an additional 150,479 shares during the period. Invesco Ltd. raised its stake in shares of Ready Capital by 6.8% in the fourth quarter. Invesco Ltd. now owns 3,116,019 shares of the real estate investment trust’s stock worth $21,251,000 after purchasing an additional 197,770 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of Ready Capital by 21.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,266,585 shares of the real estate investment trust’s stock worth $15,458,000 after purchasing an additional 398,005 shares during the period. Hedge funds and other institutional investors own 55.87% of the company’s stock.

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.