In a recent move that may signal confidence in Ready Capital Corp (NYSE:RC), Director Nathan Gilbert E has made a notable purchase of the company's shares. According to the latest SEC filings, Gilbert acquired 10,000 shares of Ready Capital's common stock, investing a total of approximately $86,475.
The transaction, which took place on March 14, 2024, involved a weighted average price of $8.6475 per share. The prices ranged from $8.645 to $8.65, indicating a narrow spread in the purchase prices for these transactions. Following this acquisition, Gilbert's total holdings in Ready Capital have increased to 83,099 shares.
Ready Capital Corp, a real estate investment trust (REIT) based in Maryland, operates within the financial sector and specializes in real estate and construction. The company's stock is listed on the New York Stock Exchange, where it trades under the ticker symbol NYSE:RC.
Investors and market watchers often pay close attention to insider transactions like these as they can provide insights into the perspectives of those who are closest to the company. While such transactions are a regular part of business for corporate executives and directors, significant purchases can sometimes be interpreted as a positive sign regarding the company's future prospects.
The SEC filing detailing this transaction was signed on behalf of Nathan Gilbert by Misbah Mohiuddin, Attorney-in-Fact, on March 18, 2024. The disclosure is part of the routine reporting that corporate insiders must adhere to, which provides transparency into their trading activities in the company's securities.
As with all insider transactions, the market and investors will likely continue to monitor the activity of Ready Capital's executives and directors for further indications of their confidence in the company's performance and direction.
InvestingPro Insights
Following the recent insider share purchase by Director Nathan Gilbert E, Ready Capital Corp (NYSE:RC) presents several noteworthy financial metrics and analyst perspectives. With a market capitalization of $1.56 billion and a P/E ratio of just 3.99, the company appears to be trading at a low earnings multiple. This could suggest that the stock is undervalued relative to its near-term earnings potential, a point underscored by an adjusted P/E ratio over the last twelve months as of Q4 2023 standing at 9.5.
One of the InvestingPro Tips highlights that Ready Capital is trading at a low P/E ratio relative to near-term earnings growth, which aligns with the company's PEG ratio of 0.13, indicating potential for growth at a rate that may not be fully reflected in the stock price. Additionally, the company pays a significant dividend to shareholders, with a yield of 13.54%, although it's worth noting there has been a dividend growth decline of -25.0% over the last twelve months as of Q4 2023.
Despite recent price volatility, with the stock experiencing a 15.27% drop over the last three months, Ready Capital's fundamentals remain strong. The company boasts a gross profit margin of 90.49% and an operating income margin of 37.56%. Moreover, Ready Capital appears to have solid liquidity, with liquid assets surpassing short-term obligations, another tip offered by InvestingPro Tips. This financial resilience could provide some reassurance to investors amid market fluctuations.
For those looking to delve deeper into Ready Capital's financial health and future prospects, there are additional InvestingPro Tips available on InvestingPro. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With access to these tips, investors can gain a more comprehensive understanding of the company's performance and make more informed decisions.
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