Sutherland stock hits 52-week low at $6.65 amid market challenges

Published 01/08/2025, 01:03 PM
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In a turbulent market environment, Sutherland Asset Management Corp (NYSE:RC)'s stock has touched a 52-week low, with shares falling to $6.65. According to InvestingPro data, the company currently offers a substantial 14.58% dividend yield, maintaining dividend payments for nine consecutive years despite market pressures. This latest price level reflects a significant downturn for the company over the past year, with the stock experiencing a substantial 1-year change, plummeting by -32.9%. Investors are closely monitoring Sutherland's performance as it navigates through the prevailing economic headwinds that have pressured the financial sector, leading to a reassessment of asset values and investor sentiment. InvestingPro's Fair Value analysis suggests the stock is currently undervalued, though the company's overall financial health score remains weak. The company's journey to its current 52-week low underscores the broader market volatility and the challenges faced by asset management firms in a shifting economic landscape. Discover more insights with InvestingPro's comprehensive research report, available for over 1,400 US stocks.

In other recent news, Ready Capital Corporation has issued $130 million in senior notes due 2029 and priced a public offering of $115 million in 9.00% Senior Notes due 2029. These notes, which are set to mature on December 15, 2029, will pay interest quarterly at a rate of 9.00% per annum. The net proceeds from these offerings will be used for the origination or acquisition of target assets, general corporate purposes, and potentially reducing borrowings under existing loan repurchase agreements or credit facilities.

In their recent financial results for the third quarter of 2024, Ready Capital reported a GAAP loss of $0.07 per share and an adjusted distributable earnings gain of $0.25 per share. Despite a 6% decline in originated loans, the company's commercial real estate portfolio stands at $8.1 billion, and it achieved record small business lending originations of $440 million. Furthermore, Ready Capital is progressing in its exit from residential mortgage banking, expected to generate $40 million from remaining mortgage servicing rights.

The company maintains a strong liquidity position with $181 million in unrestricted cash and is in discussions with banks for refinancing a $120 million debt maturity due next year. These recent developments are based on information provided by InvestingPro and the company's own press releases. Morgan Stanley (NYSE:MS) & Co. LLC, Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank, and Wells Fargo (NYSE:WFC) Securities, LLC have been named as the book-running managers for these transactions.

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