Ready Capital (NYSE:RC) Issues Quarterly Earnings Results, Misses Expectations By $0.96 EPS

Ready Capital (NYSE:RC) reported quarterly earnings of ($0.94) EPS, missing estimates by $0.96. Revenue was $85.43 million, below the expected $149.14 million. The company has a negative net margin of 47.30% and a negative return on equity of 6.93%. Shares traded down to $2.94, with a market cap of $482.31 million. A quarterly dividend of $0.125 was paid, yielding 17.0%. Analysts have mixed ratings, with one Buy, five Hold, and two Sell ratings, and an average target price of $5.30.

Ready Capital (NYSE:RC - Get Free Report) released its earnings results on Thursday. The real estate investment trust reported ($0.94) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.96), Zacks reports. The firm had revenue of $85.43 million for the quarter, compared to the consensus estimate of $149.14 million. Ready Capital had a negative return on equity of 6.93% and a negative net margin of 47.30%.

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Ready Capital Price Performance

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Shares of NYSE RC traded down $0.06 during midday trading on Friday, reaching $2.94. 5,460,592 shares of the stock traded hands, compared to its average volume of 2,324,347. The company's 50 day moving average is $3.69 and its 200 day moving average is $4.09. Ready Capital has a one year low of $2.66 and a one year high of $7.64. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.61. The stock has a market capitalization of $482.31 million, a PE ratio of -1.54 and a beta of 1.45.

Ready Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th were issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 17.0%. The ex-dividend date of this dividend was Tuesday, September 30th. Ready Capital's dividend payout ratio is -27.03%.

Wall Street Analysts Forecast Growth

Royal Caribbean Earnings Beat Fuels Strong 2025 Outlook

RC has been the topic of several recent analyst reports. Zacks Research upgraded shares of Ready Capital from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 14th. UBS Group lowered their price objective on Ready Capital from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Tuesday, October 14th. Wall Street Zen cut Ready Capital from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. B. Riley decreased their target price on Ready Capital from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Monday, August 11th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Ready Capital in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Ready Capital has an average rating of "Reduce" and an average target price of $5.30.

Check Out Our Latest Stock Report on Ready Capital

Institutional Trading of Ready Capital

RCL Stock Sinks After Earnings—Is a Buying Opportunity Ahead?

Hedge funds have recently made changes to their positions in the business. JPMorgan Chase & Co. lifted its holdings in shares of Ready Capital by 144.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 230,977 shares of the real estate investment trust's stock valued at $894,000 after acquiring an additional 136,423 shares during the last quarter. B. Riley Wealth Advisors Inc. bought a new stake in shares of Ready Capital in the 2nd quarter valued at approximately $136,000. Public Sector Pension Investment Board boosted its holdings in shares of Ready Capital by 8.8% in the 2nd quarter. Public Sector Pension Investment Board now owns 581,322 shares of the real estate investment trust's stock worth $2,540,000 after purchasing an additional 46,848 shares during the period. CANADA LIFE ASSURANCE Co boosted its holdings in shares of Ready Capital by 8.2% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 145,398 shares of the real estate investment trust's stock worth $636,000 after purchasing an additional 11,061 shares during the period. Finally, Tower Research Capital LLC TRC increased its position in shares of Ready Capital by 239.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 14,394 shares of the real estate investment trust's stock valued at $63,000 after purchasing an additional 10,157 shares during the last quarter. 55.87% of the stock is currently owned by hedge funds and other institutional investors.

About Ready Capital

(Get Free Report)

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.

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