In a recent move that signals confidence in Ready Capital Corp (NYSE:RC), Director Nathan Gilbert E has purchased a total of $83,461 worth of company stock. The transactions, which took place on March 22, 2024, were executed at prices ranging from $9.1189 to $9.1297 per share, according to a Form 4 filing with the U.S. Securities and Exchange Commission.
The acquisition consisted of two separate purchases. The first transaction saw the director buying 2,150 shares at a price of $9.1297 each. The second transaction involved the purchase of 7,000 shares at a weighted average price of $9.1189. Notably, these shares were bought in multiple transactions at prices that varied slightly within the reported range. The Form 4 filing included a footnote indicating that the reported price for the 7,000 shares is a weighted average, and full information regarding the number of shares purchased at each separate price would be provided upon request.
It's also worth noting that the 7,000 shares bought at the weighted average price of $9.1189 were acquired indirectly by the director's spouse, as disclosed in the footnotes of the filing. This indicates that while the shares are held by the spouse, Nathan Gilbert E may be deemed to have beneficial ownership of them.
Following these transactions, the director's direct ownership in Ready Capital Corp's common stock has increased significantly. The Form 4 did not report any sales of stock by the director, suggesting that this was purely an investment move to increase his stake in the company.
Ready Capital Corp, a real estate investment trust listed on the New York Stock Exchange, specializes in real estate and construction financing. The company, with its headquarters in New York City, has been a notable player in the real estate investment sector.
Investors often monitor insider buying as it can provide insights into the perspectives of company executives and directors regarding the firm's future performance. The recent purchases by Director Nathan Gilbert E may thus be an indicator of his positive outlook on Ready Capital Corp's value and prospects.
InvestingPro Insights
In light of the recent insider stock purchases by Director Nathan Gilbert E, several metrics and tips from InvestingPro provide additional context for investors considering Ready Capital Corp (NYSE:RC). With a market capitalization of $1.58 billion and a strikingly low P/E ratio of 4.04, the company presents an interesting valuation proposition. The P/E ratio further adjusts to 9.63 when considering the last twelve months as of Q4 2023, which still indicates that the stock is trading at a low earnings multiple relative to its near-term earnings growth potential, as highlighted by one of the InvestingPro Tips.
Moreover, Ready Capital Corp's dividend yield stands at an impressive 13.1%, showcasing its commitment to returning value to shareholders. This is further supported by the company's history of maintaining dividend payments for 9 consecutive years, a testament to its financial stability and reliability as an income-generating investment. This aligns with another InvestingPro Tip that emphasizes the significance of the dividend to shareholders.
While the company's stock price has seen a decline of 15.01% over the last three months, the insider buying activity may signal a belief in the company's potential for a turnaround or undervaluation. For investors seeking a deeper dive into Ready Capital Corp's financials and future outlook, additional InvestingPro Tips are available, offering insights such as analysts' expectations and liquidity assessments. To access these tips and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 4 additional tips listed in InvestingPro, investors can gain a comprehensive understanding of the company's potential.
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