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Ready Capital Outpaces Earnings Forecasts, Prepares for Financial Release

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 2/28/2026, 11:24 am ET 2/28/2026, 11:24 am ET | 5 min 5 min read
Ready Capital Outpaces Earnings Forecasts, Prepares for Financial Release Thumbnail

Ready Capital Corporation stocks have been trading up by 13.07 percent amid anticipation of robust Q3 earnings growth.

Finance industry expert:

Analyst sentiment – neutral

Ready Capital (RC) demonstrates a precarious market position characterized by significant financial distress. The company exhibits alarming profitability metrics with an EBIT margin of -896.7% and a total profit margin of -1473.78%, underscoring its struggle to maintain efficient operations. The revenue drop of 60.64% over three years, alongside a diminishing five-year trend, signals operational inefficiencies. RC’s valuation metrics highlight a low price-to-tangible book ratio of 0.18 and a price-to-book ratio of 0.17, suggesting potential undervaluation but also spotlighting high financial risk. The debt levels are substantial with a total debt to equity ratio at 2.27, reflecting leverage challenges exacerbated by unstable cash flows and negative earnings trajectories.

Examining RC’s recent technical patterns, the stock displays erratic price movements; starting at $1.69 and escalating to a $1.85 high indicates volatile sentiment. Yet, the closing price at $1.8431 suggests a minor recovery. Analyzing the intraday trends, notably sharp price decreases followed by rebounds, indicates a market uncertain yet opportunistic for strategic entries. Volume analysis reinforces uncertainty, showcasing low liquidity as a dominant factor. For traders, exploiting short-term bullish bursts into the high $1.80’s while maintaining stringent stop-loss orders, potentially around $1.66, could capitalize on short-lived upswings amidst ongoing volatility until more stable price action is demonstrated.

Recent developments indicate potential strategic pivots. Ready Capital posted exceptional distributable EPS for Q3 2025, significantly outperforming expectations and revealing a robust book value per share. This, combined with leadership restructuring aimed at better managing commercial real estate pressures, provides an optimistic outlook. However, the company’s long-term ability to stabilize and sustain profitability, especially compared against more resilient Finance and Mortgage REITs, remains critical. As it approaches financial release dates, traders should closely observe the $1.90 resistance level for potential breakout plays, considering a target near $2.10, with downside risks anchored by a support threshold at $1.66. Overall, Ready Capital is a speculative buy, hinged on improved fundamentals and strategic realignment.

Candlestick Chart

Weekly Update Feb 23 – Feb 27, 2026: On Saturday, February 28, 2026 Ready Capital Corporation stock [NYSE: RC] is trending up by 13.07%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Ready Capital has demonstrated financial agility by reporting a noteworthy Q3 earnings, displaying a remarkable EPS performance at $0.43. This figure not only surpassed analyst predictions but also underscores the company’s effective financial strategies. The book value per share stands at $8.79, indicating a sound financial foundation. A combination of thorough liquidity planning and strategic equity drawdowns is being employed to mitigate the ongoing commercial real estate challenges stemming from the Covid era.

On a broader note, Ready Capital’s financial strength is evident through comprehensive asset and debt management. Although figures like the EBIT margin and gross margin display a negative skew, the company’s current and quick ratios highlight a decent level of corporate liquidity. Meanwhile, improvements in returns on assets and equity suggest effective management practices, although challenges persist in elevated leverage ratios.

More Breaking News

The recent financial data reveals a mixed picture. Readiness for upcoming results release conveys the organization’s confidence in maintaining strategic growth objectives. Meanwhile, market analysts remain attentive to shifts in leadership dynamics, which may play a crucial role in recalibrating and fueling the commercial real estate lending business unit.

Conclusion

Ready Capital has displayed commendable fiscal management with its elevated Q3 performance and strategic initiations. The upcoming full-year financial disclosures, alongside reaffirmed internal leadership, mark a pivotal phase in the company’s evolution. With the implementation of strategic measures for business stabilization and expansion, Ready Capital stands poised to harness opportunities amidst a landscape of ongoing real estate market challenges. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This philosophy is particularly relevant for traders and market-watchers eager for insights into the company’s financial adaptability and strategic trajectory, who will find the imminent financial release highly reflective of Ready Capital’s enduring market presence.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”