What Happened?
Shares of real estate finance company Ready Capital (NYSE: RC) jumped 3.7% in the morning session after the stock rebounded as it hit a new 52-week low following the company's release of disappointing second-quarter 2025 results that broadly missed Wall Street's expectations. The company posted a GAAP loss of $0.14 per share, significantly underperforming analysts' estimates of a $0.05 profit. Revenue of $43.57 million also fell short of the $47.53 million consensus. Adding to investor concerns, net interest income, a key performance metric for lenders, came in at $16.9 million, a staggering 68.5% below expectations. The report also highlighted a continued decline in the company's tangible book value per share (TBVPS), a crucial indicator of a bank's net worth. The overwhelmingly weak quarter, marked by missed targets and deteriorating fundamentals, likely fueled the negative sentiment driving the stock's decline.
After the initial pop the shares cooled down to $3.82, up 1.1% from previous close.
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What Is The Market Telling Us
Ready Capital’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Ready Capital is down 44.5% since the beginning of the year, and at $3.82 per share, it is trading 55.3% below its 52-week high of $8.54 from August 2024. Investors who bought $1,000 worth of Ready Capital’s shares 5 years ago would now be looking at an investment worth $402.95.
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