UBS Keeps Neutral Rating for Ready Capital, PT Down to $4

UBS Keeps Neutral Rating for Ready Capital, PT Down to $4

UBS Group has maintained its neutral rating for Ready Capital (NYSE: RC) while reducing its price target to $4.00, according to a recent research report dated May 21, 2025. This adjustment comes amidst a broader trend of analysts downgrading the stock, with several other major firms also revising their price targets and ratings in recent months [1].

The downgrade follows a string of negative earnings reports and financial indicators for Ready Capital. The company reported a quarterly earnings per share (EPS) of ($0.14), significantly missing the consensus estimate of ($0.01). Moreover, the company's negative net margin of 40.59% and revenue of ($9.77) million during the quarter further highlight its financial challenges [1].

Several institutional investors have also been active in their trading of Ready Capital's stock. Sterling Capital Management LLC, for instance, increased its holdings by 822.8% during the fourth quarter, while Larson Financial Group LLC and Nomura Asset Management Co. Ltd. also made significant purchases during the first and second quarters, respectively [1].

Despite the recent downturn, Ready Capital remains a significant player in the real estate finance sector, operating through its LMM Commercial Real Estate and Small Business Lending segments. The company's focus on lower-to-middle-market (LLM) commercial real estate loans and SBA loans positions it to capitalize on the growing demand for such financing.

Investors should closely monitor Ready Capital's financial performance and the broader market conditions affecting its sector. The company's ability to navigate through these challenges will be crucial in determining its future prospects.

References:
[1] https://www.marketbeat.com/instant-alerts/ready-capital-nyserc-rating-lowered-to-sell-at-wall-street-zen-2025-08-16/