Ready Capital’s chief credit officer Adam Zausmer acquires $54,200 in stock

Adam Zausmer, the Chief Credit Officer of Ready Capital Corp (NYSE:RC), recently purchased 10,000 shares of the company’s common stock. The shares were acquired at a price of $5.42 each, amounting to a total investment of $54,200. This transaction was reported in a recent SEC filing dated March 7, 2025. According to InvestingPro data, this insider purchase comes at a time when the stock is trading near its 52-week low of $4.74, with management actively buying back shares. Following this acquisition, Zausmer now directly owns 301,105 shares of Ready Capital. The company currently offers a substantial 9.75% dividend yield and has maintained dividend payments for 10 consecutive years. InvestingPro analysis indicates the stock is currently undervalued, with 12 additional premium insights available to subscribers, including detailed valuation metrics and growth forecasts.

In other recent news, Ready Capital Corp. reported a significant fourth-quarter earnings miss for 2024, with a GAAP loss of $1.90 per share and distributable earnings per share showing a loss of $0.03, falling short of the forecasted $0.23. The company’s revenue from core operations decreased by 12% to $91.6 million, reflecting the challenges in the commercial real estate lending market. Keefe, Bruyette & Woods responded to these results by lowering the price target for Ready Capital from $6.25 to $4.00, maintaining an Underperform rating due to concerns over a smaller interest-earning portfolio and increased borrowing costs. Additionally, Citizens JMP downgraded Ready Capital’s stock from ’Market Outperform’ to ’Market Perform,’ following the announcement of positive data from the VERIFY study, which is expected to impact future discussions with payors. Ready Capital has also issued $220 million in secured notes with a high interest rate of 9.375%, which analysts predict will further affect the company’s earnings. Despite the stock trading below book value, analysts express caution due to credit issues and uncertainties about long-term earnings potential. The company has reduced its dividend to $0.125 per share and is preparing for a merger with UDF IV, expected to close in March, projected to add 17% to incremental earnings.

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