Piper Sandler slashes price target on Ready Capital Corporation [RC] – find out why.



Ready Capital Corporation [NYSE: RC] slipped around -0.92 points on Wednesday, while shares priced at $15.27 at the close of the session, down -5.68%. The company report on January 11, 2022 that Ready Capital Corporation Announces Pricing of its Upsized Public Offering of Common Stock.

Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) today announced that the Company has priced an upsized underwritten public offering of 7,000,000 shares of common stock for total gross proceeds of approximately $108.9 million. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to 1,050,000 additional shares of common stock. The Company intends to use the net proceeds from this offering to originate or acquire the Company’s target assets consistent with its investment strategy and for general corporate purposes. The offering is expected to close on January 14, 2022, and is subject to customary closing conditions.

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Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, Keefe, Bruyette & Woods, A Stifel Company, and Raymond James are acting as the joint book-running managers for the offering. The underwriters propose to offer the shares of common stock from time to time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.

Compared to the average trading volume of 524.96K shares, RC reached a trading volume of 6182549 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Ready Capital Corporation [RC]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RC shares is $17.46 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RC stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Piper Sandler have made an estimate for Ready Capital Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on July 08, 2021. The new note on the price target was released on April 22, 2021, representing the official price target for Ready Capital Corporation stock. Previously, the target price had yet another raise to $14, while BTIG Research analysts kept a Buy rating on RC stock.

The Average True Range (ATR) for Ready Capital Corporation is set at 0.41, with the Price to Sales ratio for RC stock in the period of the last 12 months amounting to 2.13. The Price to Book ratio for the last quarter was 1.00, with the Price to Cash per share for the same quarter was set at 2.84.

How has RC stock performed recently?

Ready Capital Corporation [RC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.92. With this latest performance, RC shares dropped by -4.14% in over the last four-week period, additionally plugging by 1.60% over the last 6 months – not to mention a rise of 29.85% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RC stock in for the last two-week period is set at 40.29, with the RSI for the last a single of trading hit 34.74, and the three-weeks RSI is set at 43.45 for Ready Capital Corporation [RC]. The present Moving Average for the last 50 days of trading for this stock 15.83, while it was recorded at 15.92 for the last single week of trading, and 15.21 for the last 200 days.

Ready Capital Corporation [RC]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Ready Capital Corporation [RC] shares currently have an operating margin of +35.76 and a Gross Margin at +69.31. Ready Capital Corporation’s Net Margin is presently recorded at +6.85.

Return on Total Capital for RC is now 4.67, given the latest momentum, and Return on Invested Capital for the company is 1.12. Return on Equity for this stock inclined to 5.30, with Return on Assets sitting at 0.84. When it comes to the capital structure of this company, Ready Capital Corporation [RC] has a Total Debt to Total Equity ratio set at 505.82. Additionally, RC Total Debt to Total Capital is recorded at 83.49, with Total Debt to Total Assets ending up at 76.77. Long-Term Debt to Equity for the company is recorded at 383.24, with the Long-Term Debt to Total Capital now at 63.26.

Receivables Turnover for the company is 11.64 with a Total Asset Turnover recorded at a value of 0.12.

Earnings analysis for Ready Capital Corporation [RC]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ready Capital Corporation go to 14.21%.

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Insider trade positions for Ready Capital Corporation [RC]

There are presently around $495 million, or 62.20% of RC stock, in the hands of institutional investors. The top three institutional holders of RC stocks are: BLACKROCK INC. with ownership of 10,528,128, which is approximately -2.285% of the company’s market cap and around 1.30% of the total institutional ownership; VANGUARD GROUP INC, holding 3,843,020 shares of the stock with an approximate value of $58.68 million in RC stocks shares; and STATE STREET CORP, currently with $33.55 million in RC stock with ownership of nearly 0.427% of the company’s market capitalization.

Positions in Ready Capital Corporation stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 71 institutional holders increased their position in Ready Capital Corporation [NYSE:RC] by around 1,596,652 shares. Additionally, 69 investors decreased positions by around 2,362,133 shares, while 26 investors held positions by with 28,489,327 shares. The mentioned changes placed institutional holdings at 32,448,112 shares, according to the latest SEC report filing. RC stock had 20 new institutional investments in for a total of 261,845 shares, while 12 institutional investors sold positions of 722,953 shares during the same period.