Ready Capital (NYSE:RC) Stock Crosses Below 200-Day Moving Average – Should You Sell?

Ready Capital Corp (NYSE:RC)’s share price crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $1.91 and traded as low as $1.59. Ready Capital shares last traded at $1.6850, with a volume of 1,731,471 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have commented on RC shares. Weiss Ratings restated a “sell (e+)” rating on shares of Ready Capital in a research report on Tuesday, June 2nd. Piper Sandler cut their price target on shares of Ready Capital from $2.50 to $2.00 and set a “neutral” rating for the company in a report on Monday, March 2nd. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $2.81.

Ready Capital Price Performance

The firm has a market cap of $286.66 million, a PE ratio of -0.55 and a beta of 1.44. The company has a current ratio of 1.60, a quick ratio of 1.60 and a debt-to-equity ratio of 0.95. The company has a 50 day moving average price of $1.78 and a 200 day moving average price of $1.90.

Ready Capital (NYSE:RC) last released its quarterly earnings data on Thursday, May 7th. The real estate investment trust reported ($0.33) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($0.18). The firm had revenue of $130.55 million during the quarter, compared to analysts’ expectations of $68.67 million. Ready Capital had a negative net margin of 102.10% and a negative return on equity of 14.69%. On average, sell-side analysts expect that Ready Capital Corp will post -0.94 EPS for the current year.

Ready Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th will be given a $0.01 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 2.3%. Ready Capital’s dividend payout ratio (DPR) is currently -1.26%.

Institutional Investors Weigh In On Ready Capital

Institutional investors and hedge funds have recently made changes to their positions in the business. Quantum Portfolio Management LLC acquired a new stake in Ready Capital in the 1st quarter valued at about $84,956,000. Private Management Group Inc. raised its position in Ready Capital by 197.0% during the fourth quarter. Private Management Group Inc. now owns 4,806,088 shares of the real estate investment trust’s stock worth $10,477,000 after acquiring an additional 3,188,135 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Ready Capital by 21.2% in the third quarter. Invesco Ltd. now owns 4,239,678 shares of the real estate investment trust’s stock valued at $16,408,000 after purchasing an additional 742,226 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Ready Capital by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 3,725,675 shares of the real estate investment trust’s stock valued at $8,123,000 after purchasing an additional 53,592 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Ready Capital by 14.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,249,324 shares of the real estate investment trust’s stock valued at $7,084,000 after purchasing an additional 402,173 shares during the last quarter. 55.87% of the stock is currently owned by hedge funds and other institutional investors.

Ready Capital Company Profile

Ready Capital Corporation is a specialty finance real estate investment trust (REIT) that originates, acquires and manages commercial real estate loans and related assets. The company offers financing solutions across a variety of property types, including multifamily, office, retail, industrial, hospitality and mixed-use assets. Ready Capital focuses on delivering flexible loan structures to meet the diverse needs of borrowers in the small balance and middle-market sectors.

Through its small balance commercial real estate lending platform, Ready Capital provides loans typically ranging from $1 million to $15 million for acquisitions, refinancings, renovations and bridge financing.