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Ready Capital Corp (NYSE:RC) CEO and CIO Thomas E. Capasse recently acquired 100,000 shares of the company’s common stock, as disclosed in a recent SEC filing. The transactions, which took place on March 5 and 6, were completed at prices ranging from $4.798 to $4.99 per share, amounting to a total purchase value of $497,080. This insider purchase comes as the stock trades near its 52-week low of $4.74, having declined about 28% in the past week. According to InvestingPro analysis, management has been actively buying back shares, showing strong confidence in the company’s prospects.
Following these acquisitions, Capasse’s direct ownership in Ready Capital increased to 409,925 shares. Additionally, Capasse holds indirect interests through Waterfall Asset Management, LLC, with shares held by the partnership and its affiliates. The company currently offers an attractive 10% dividend yield and has maintained dividend payments for 10 consecutive years.
Ready Capital Corp, a real estate investment trust, continues to attract insider attention, reflected in Capasse’s recent stock purchases. With the stock showing oversold conditions and trading near yearly lows, InvestingPro subscribers can access 15+ additional exclusive insights and detailed analysis about Ready Capital’s financial health and future prospects.
In other recent news, Ready Capital Corp’s fourth-quarter 2024 earnings report revealed a significant earnings miss, with a GAAP loss of $1.90 per share and a distributable earnings loss of $0.03 per share, falling short of the forecasted $0.23. Revenue from core operations decreased by 12% to $91.6 million, impacted by increased provisions for loan loss and valuation allowances totaling $253.8 million. Following this report, Citizens JMP downgraded Ready Capital’s stock rating from ’Market Outperform’ to ’Market Perform,’ while Keefe, Bruyette & Woods reduced the price target from $6.25 to $4.00, maintaining an ’Underperform’ rating. The downgrade and price target adjustment reflect concerns over a smaller interest-earning portfolio, anticipated credit and real estate costs, and decreased new loan originations.
Keefe, Bruyette & Woods also highlighted challenges Ready Capital faces with significant senior note and corporate debt maturities in 2026, amounting to $760.9 million. In response to financial pressures, the company issued $220 million in secured notes with a high interest rate of 9.375%, which analysts predict will further impact earnings. Despite these challenges, Ready Capital plans to originate $1-1.5 billion in commercial real estate loans in 2025 and expects a merger with UDF IV to add 17% to incremental earnings. The company also reduced its dividend to $0.125 per share to better align with projected cash earnings and preserve book value.
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