Ready Capital (NYSE:RC) Reaches New 52-Week Low – Time to Sell?

Ready Capital Co. (NYSE:RC)’s share price hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $4.44 and last traded at $4.65, with a volume of 1047099 shares. The stock had previously closed at $4.87.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Citizens Jmp lowered shares of Ready Capital from an “outperform” rating to a “market perform” rating in a report on Monday, March 3rd. Wedbush reaffirmed a “neutral” rating and set a $6.00 price objective (down from $8.00) on shares of Ready Capital in a research note on Tuesday, March 4th. B. Riley restated a “neutral” rating and set a $10.00 price target (down previously from $12.00) on shares of Ready Capital in a report 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. Finally, UBS Group reduced their target price on Ready Capital from $7.00 to $5.00 and set a “neutral” rating on the stock in a research note on Friday, March 14th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, Ready Capital presently has a consensus rating of “Hold” and an average price target of $7.50.

Ready Capital Stock Down 3.4 %

The company has a market capitalization of $808.45 million, a P/E ratio of -6.72 and a beta of 1.43. The company has a 50-day moving average of $5.88 and a two-hundred day moving average of $6.73. 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 Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Stockholders of record on Monday, March 31st will be issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 10.63%. The ex-dividend date of this dividend is Monday, March 31st. Ready Capital’s dividend payout ratio (DPR) is presently -18.94%.

Insider Transactions at Ready Capital

In related news, insider Adam Zausmer purchased 10,000 shares of the company’s stock in a transaction dated Friday, March 7th. The shares were purchased at an average cost of $5.42 per share, with a total value of $54,200.00. Following the transaction, the insider now directly owns 301,105 shares in the company, valued at $1,631,989.10. This trade represents a 3.44 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.09% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Sterling Capital Management LLC increased its holdings in Ready Capital by 822.8% in the 4th quarter. Sterling Capital Management LLC now owns 5,177 shares of the real estate investment trust’s stock worth $35,000 after acquiring an additional 4,616 shares in the last quarter. Steward Partners Investment Advisory LLC increased its holdings in Ready Capital by 3,075.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 6,350 shares of the real estate investment trust’s stock valued at $43,000 after acquiring an additional 6,150 shares during the last quarter. Avion Wealth purchased a new stake in Ready Capital in the 4th quarter worth $47,000. Ausdal Financial Partners Inc. bought a new position in shares of Ready Capital during the 4th quarter valued at about $68,000. Finally, Proficio Capital Partners LLC purchased a new position in shares of Ready Capital during the fourth quarter valued at about $69,000. 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.