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Nathan Gilbert, a director at Ready Capital Corp (NYSE:RC), recently purchased 5,000 shares of the company’s common stock. The acquisition, which took place on March 10, amounted to a total value of $25,590, with each share priced at $5.118. The purchase comes as InvestingPro data shows the stock trading near oversold levels after a significant 30% decline over the past six months. Following this transaction, Gilbert’s direct ownership in Ready Capital has increased to 118,106 shares. Additionally, indirectly owned shares, held by his spouse, total 7,000 shares. This move reflects continued confidence in Ready Capital, a real estate investment trust based in New York that currently offers a substantial 10% dividend yield. InvestingPro analysis indicates the stock is currently undervalued, with 12 additional investment insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Ready Capital Corp. reported a significant earnings shortfall for the fourth quarter of 2024, with a GAAP loss of $1.90 per share and distributable earnings per share at a loss of $0.03, missing the forecast of $0.23. Revenue from core operations decreased by 12% to $91.6 million, reflecting challenges in the commercial real estate lending market. Following these results, Keefe, Bruyette & Woods lowered their price target for Ready Capital to $4.00 from $6.25, while maintaining an Underperform rating due to concerns over credit issues and uncertainties in the company’s long-term earnings potential. Citizens JMP also downgraded Ready Capital’s stock rating from ’Market Outperform’ to ’Market Perform.’ The company faces potential challenges with significant senior note and corporate debt maturities in 2026, totaling $760.9 million, as reported in their 10-K filing. Additionally, Ready Capital has issued $220 million in secured notes with a high interest rate of 9.375%, which analysts predict will impact earnings further. Despite the company’s stock trading at 0.47 times its book value, analysts express caution due to ongoing uncertainties and limited visibility into future earnings.
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