Wedbush Has Bearish Outlook for Ready Capital Q2 Earnings

Ready Capital Co. (NYSE:RC) – Wedbush cut their Q2 2025 EPS estimates for Ready Capital in a research report issued on Monday, May 12th. Wedbush analyst J. Mccanless now anticipates that the real estate investment trust will post earnings of ($0.11) per share for the quarter, down from their prior estimate of $0.14. Wedbush has a “Neutral” rating and a $6.00 price target on the stock. The consensus estimate for Ready Capital’s current full-year earnings is $0.93 per share. Wedbush also issued estimates for Ready Capital’s Q3 2025 earnings at $0.13 EPS, Q4 2025 earnings at $0.16 EPS and FY2026 earnings at $0.74 EPS.

Ready Capital (NYSE:RC) last announced its quarterly earnings results on Thursday, May 8th. The real estate investment trust reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.21). The business had revenue of $40.24 million during the quarter, compared to the consensus estimate of $212.33 million. Ready Capital had a positive return on equity of 7.53% and a negative net margin of 11.65%.

A number of other research analysts have also weighed in on RC. UBS Group cut their price target on shares of Ready Capital from $5.00 to $4.75 and set a “neutral” rating on the stock in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods cut their price objective on shares of Ready Capital from $4.00 to $3.75 and set an “underperform” rating on the stock in a research report on Tuesday. Finally, Citizens Jmp cut Ready Capital from an “outperform” rating to a “market perform” rating in a report on Monday, March 3rd. One research analyst has rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $7.00.

Ready Capital Price Performance

Shares of RC opened at $4.42 on Thursday. The stock has a 50 day simple moving average of $4.66 and a 200 day simple moving average of $6.11. Ready Capital has a 52-week low of $3.93 and a 52-week high of $9.54. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.67 and a current ratio of 1.67. The firm has a market capitalization of $761.50 million, a PE ratio of -6.31 and a beta of 1.45.

Hedge Funds Weigh In On Ready Capital

Hedge funds and other institutional investors have recently made changes to their positions in the company. Private Management Group Inc. bought a new position in shares of Ready Capital in the 1st quarter valued at about $8,235,000. Vanguard Group Inc. grew its holdings in Ready Capital by 7.3% during the fourth quarter. Vanguard Group Inc. now owns 11,366,828 shares of the real estate investment trust’s stock worth $77,522,000 after purchasing an additional 768,891 shares during the period. Hudson Bay Capital Management LP acquired a new position in Ready Capital during the fourth quarter worth approximately $4,393,000. Invesco Ltd. increased its position in Ready Capital by 16.1% during the first quarter. Invesco Ltd. now owns 3,618,181 shares of the real estate investment trust’s stock worth $18,417,000 after buying an additional 502,162 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Ready Capital by 21.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,266,585 shares of the real estate investment trust’s stock valued at $15,458,000 after buying an additional 398,005 shares during the period. 55.87% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, CEO Thomas E. Capasse acquired 10,000 shares of the company’s stock in a transaction dated Wednesday, March 5th. The shares were bought at an average price of $4.80 per share, for a total transaction of $48,000.00. Following the purchase, the chief executive officer now directly owns 319,925 shares in the company, valued at approximately $1,535,640. This trade represents a 3.23% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.09% of the stock is currently owned by corporate insiders.

Ready Capital Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Monday, March 31st were given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 11.31%. The ex-dividend date was Monday, March 31st. Ready Capital’s dividend payout ratio is presently -28.74%.

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.