FTSE Russell Announces Changes to Russell Microcap Index
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 40 minutes ago
0mins
Source: seekingalpha
- New Additions: FTSE Russell's preliminary list indicates that financial firms such as Ready Capital, Gemini Space Station, KKR Real Estate Finance Trust, Katapult Holdings, and REalloys are set to join the Russell Microcap Index, which is expected to enhance their market visibility and liquidity.
- Removals: Companies like Dave, SelectQuote, and Mechanics Bancorp will be removed from the Russell Microcap Index, potentially putting downward pressure on their stock prices and affecting investor confidence, particularly during the market reconstitution period.
- Reconstitution Timing: The changes will take effect after U.S. equity markets close on June 26, necessitating that affected companies quickly adjust their market strategies to align with the new index composition, which may impact their short-term performance.
- Market Reaction Anticipation: With the inclusion of companies like Gemini Space Station, market interest in their growth potential is likely to increase, especially following their Q1 earnings beat, which may attract more investor attention.
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Analyst Views on RC
Wall Street analysts forecast RC stock price to rise
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 1.850
Low
2.05
Averages
2.43
High
2.75
Current: 1.850
Low
2.05
Averages
2.43
High
2.75
About RC
Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner-occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Its segments include LMM Commercial Real Estate and Small Business Lending. The LMM Commercial Real Estate segment originates lower-to-middle-market commercial real estate (LMM) loans across the full life cycle of an LMM property, including construction, bridge, stabilized and agency loan origination channels through its subsidiary, ReadyCap Commercial, LLC. The Small Business Lending segment acquires, originates and services owner-occupied loans guaranteed by the SBA under the SBA Section 7(a) Program through its subsidiary, ReadyCap Lending, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FTSE Russell Announces Changes to Russell Microcap Index
- New Additions: FTSE Russell's preliminary list indicates that financial firms such as Ready Capital, Gemini Space Station, KKR Real Estate Finance Trust, Katapult Holdings, and REalloys are set to join the Russell Microcap Index, which is expected to enhance their market visibility and liquidity.
- Removals: Companies like Dave, SelectQuote, and Mechanics Bancorp will be removed from the Russell Microcap Index, potentially putting downward pressure on their stock prices and affecting investor confidence, particularly during the market reconstitution period.
- Reconstitution Timing: The changes will take effect after U.S. equity markets close on June 26, necessitating that affected companies quickly adjust their market strategies to align with the new index composition, which may impact their short-term performance.
- Market Reaction Anticipation: With the inclusion of companies like Gemini Space Station, market interest in their growth potential is likely to increase, especially following their Q1 earnings beat, which may attract more investor attention.
See More
Ready Capital Q1 2026 Earnings Call Insights
- Balance Sheet Repositioning: Ready Capital generated $1.4 billion in cash year-to-date from loan sales and liquidations, successfully paying down over $1.1 billion in warehouse debt, indicating ongoing progress in its balance sheet repositioning strategy despite reporting a negative earnings per share.
- Liquidity Plan: Management anticipates an incremental $400 million liquidity from the sale and runoff of $2 billion to $2.5 billion of CRE loans and REO assets, aimed at meeting future cash flow needs, with the final loan pool sale expected to alleviate the material book value pressure the company has faced.
- Core Business Focus: The company plans to simplify its business model by refocusing on middle-market CRE debt investing and SBA 7(a) lending, with small business lending expected to represent 20% of the company's capital, enhancing capital allocation efficiency and diversifying revenue streams.
- Financial Performance: Despite reporting a GAAP loss of $1.25 per share in Q1 and distributable earnings losses, management expects future net interest income to improve as non-accrual loans decrease and capital is recycled back into market yields, reflecting both challenges and opportunities during the transition period.
See More
Ready Capital Reports Q1 2026 Earnings with Significant Losses
- Financial Loss: Ready Capital reported a GAAP EPS of -$1.25 for Q1 2026, indicating significant financial challenges that could undermine investor confidence and negatively impact stock performance.
- Distributable Loss: The distributable loss per common share was -$1.00, with a loss of -$0.33 before realized losses, highlighting substantial operational and asset management issues that may lead to future cash flow pressures.
- Strategic Restructuring Goals: Ready Capital aims to achieve $850 million in free cash flow and reduce its commercial real estate loan book by 60% in 2026, a strategy designed to improve financial health and enhance market competitiveness.
- Risk Advisory: The company flagged potential risks associated with loan modifications and specific assets like Block 216 and 55 E Jackson, suggesting that investors should carefully assess the potential financial implications.
See More
Ready Capital Q1 Earnings Announcement Scheduled
- Earnings Release Date: Ready Capital is set to announce its Q1 earnings on May 7th after market close, with a consensus EPS estimate of -$0.20, reflecting a significant 122.2% year-over-year decline, indicating pressure on profitability.
- Revenue Expectations: The expected revenue for Q1 is $124.8 million, representing a 210.1% year-over-year increase, which highlights potential growth in revenue but raises concerns about declining profitability.
- Historical Performance Review: Over the past two years, Ready Capital has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, indicating considerable volatility in its performance and suggesting caution for investors.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 3 downward revisions, while revenue estimates have experienced 1 upward revision and 3 downward revisions, reflecting a lack of confidence in the company's future performance.
See More
Ready Capital to Release Q1 2026 Financial Results
- Earnings Release Schedule: Ready Capital Corporation will announce its Q1 2026 financial results after the NYSE closes on May 7, 2026, highlighting the company's commitment to transparency and investor communication.
- Webcast and Conference Call: Management will host a webcast and conference call on May 8, 2026, at 8:30 a.m. ET to provide a business update and discuss financial results for the quarter ended March 31, 2026, aiming to enhance investor understanding of the company's operations.
- Web Access Recommendation: The company encourages investors to use the webcast due to potential extended wait times for dial-in access, reflecting its focus on improving the investor experience.
- Replay Information: A replay of the call will be available approximately two hours after the live event until May 22, 2026, ensuring that investors who missed the live session can access key information, further strengthening communication between the company and its investors.
See More
Stock Futures Retreat Amid Geopolitical Tensions
- Market Sentiment Volatility: Stock futures retreated in premarket trading on Thursday as geopolitical tensions escalated, undermining investor expectations for an end to the month-long conflict and leading to unstable market sentiment.
- Surge in Oil Prices: Following President Trump's warning of 'extremely hard' actions against Iran, crude oil prices surged over 7%, which not only impacted energy stocks but also raised inflation concerns that could affect the broader market.
- Ready Capital Growth: Ready Capital (RC) shares rose 4% as the company outlined progress on its deleveraging strategy, including the sale of 47 commercial real estate loans totaling $943 million in unpaid principal balance, aimed at boosting liquidity and strengthening the balance sheet.
- Celldex Financing Plan: Celldex Therapeutics (CLDX) shares fell 7% after the company priced an underwritten public offering of approximately 10.3 million shares at $29 each, raising about $300 million, with proceeds primarily supporting commercial readiness for barzolvolimab.
See More
FTSE Russell Announces Changes to Russell Microcap Index
- New Additions: FTSE Russell's preliminary list indicates that financial firms such as Ready Capital, Gemini Space Station, KKR Real Estate Finance Trust, Katapult Holdings, and REalloys are set to join the Russell Microcap Index, which is expected to enhance their market visibility and liquidity.
- Removals: Companies like Dave, SelectQuote, and Mechanics Bancorp will be removed from the Russell Microcap Index, potentially putting downward pressure on their stock prices and affecting investor confidence, particularly during the market reconstitution period.
- Reconstitution Timing: The changes will take effect after U.S. equity markets close on June 26, necessitating that affected companies quickly adjust their market strategies to align with the new index composition, which may impact their short-term performance.
- Market Reaction Anticipation: With the inclusion of companies like Gemini Space Station, market interest in their growth potential is likely to increase, especially following their Q1 earnings beat, which may attract more investor attention.
See More
Ready Capital Q1 2026 Earnings Call Insights
- Balance Sheet Repositioning: Ready Capital generated $1.4 billion in cash year-to-date from loan sales and liquidations, successfully paying down over $1.1 billion in warehouse debt, indicating ongoing progress in its balance sheet repositioning strategy despite reporting a negative earnings per share.
- Liquidity Plan: Management anticipates an incremental $400 million liquidity from the sale and runoff of $2 billion to $2.5 billion of CRE loans and REO assets, aimed at meeting future cash flow needs, with the final loan pool sale expected to alleviate the material book value pressure the company has faced.
- Core Business Focus: The company plans to simplify its business model by refocusing on middle-market CRE debt investing and SBA 7(a) lending, with small business lending expected to represent 20% of the company's capital, enhancing capital allocation efficiency and diversifying revenue streams.
- Financial Performance: Despite reporting a GAAP loss of $1.25 per share in Q1 and distributable earnings losses, management expects future net interest income to improve as non-accrual loans decrease and capital is recycled back into market yields, reflecting both challenges and opportunities during the transition period.
See More
Ready Capital Reports Q1 2026 Earnings with Significant Losses
- Financial Loss: Ready Capital reported a GAAP EPS of -$1.25 for Q1 2026, indicating significant financial challenges that could undermine investor confidence and negatively impact stock performance.
- Distributable Loss: The distributable loss per common share was -$1.00, with a loss of -$0.33 before realized losses, highlighting substantial operational and asset management issues that may lead to future cash flow pressures.
- Strategic Restructuring Goals: Ready Capital aims to achieve $850 million in free cash flow and reduce its commercial real estate loan book by 60% in 2026, a strategy designed to improve financial health and enhance market competitiveness.
- Risk Advisory: The company flagged potential risks associated with loan modifications and specific assets like Block 216 and 55 E Jackson, suggesting that investors should carefully assess the potential financial implications.
See More
Ready Capital Q1 Earnings Announcement Scheduled
- Earnings Release Date: Ready Capital is set to announce its Q1 earnings on May 7th after market close, with a consensus EPS estimate of -$0.20, reflecting a significant 122.2% year-over-year decline, indicating pressure on profitability.
- Revenue Expectations: The expected revenue for Q1 is $124.8 million, representing a 210.1% year-over-year increase, which highlights potential growth in revenue but raises concerns about declining profitability.
- Historical Performance Review: Over the past two years, Ready Capital has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, indicating considerable volatility in its performance and suggesting caution for investors.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 3 downward revisions, while revenue estimates have experienced 1 upward revision and 3 downward revisions, reflecting a lack of confidence in the company's future performance.
See More
Ready Capital to Release Q1 2026 Financial Results
- Earnings Release Schedule: Ready Capital Corporation will announce its Q1 2026 financial results after the NYSE closes on May 7, 2026, highlighting the company's commitment to transparency and investor communication.
- Webcast and Conference Call: Management will host a webcast and conference call on May 8, 2026, at 8:30 a.m. ET to provide a business update and discuss financial results for the quarter ended March 31, 2026, aiming to enhance investor understanding of the company's operations.
- Web Access Recommendation: The company encourages investors to use the webcast due to potential extended wait times for dial-in access, reflecting its focus on improving the investor experience.
- Replay Information: A replay of the call will be available approximately two hours after the live event until May 22, 2026, ensuring that investors who missed the live session can access key information, further strengthening communication between the company and its investors.
See More
Stock Futures Retreat Amid Geopolitical Tensions
- Market Sentiment Volatility: Stock futures retreated in premarket trading on Thursday as geopolitical tensions escalated, undermining investor expectations for an end to the month-long conflict and leading to unstable market sentiment.
- Surge in Oil Prices: Following President Trump's warning of 'extremely hard' actions against Iran, crude oil prices surged over 7%, which not only impacted energy stocks but also raised inflation concerns that could affect the broader market.
- Ready Capital Growth: Ready Capital (RC) shares rose 4% as the company outlined progress on its deleveraging strategy, including the sale of 47 commercial real estate loans totaling $943 million in unpaid principal balance, aimed at boosting liquidity and strengthening the balance sheet.
- Celldex Financing Plan: Celldex Therapeutics (CLDX) shares fell 7% after the company priced an underwritten public offering of approximately 10.3 million shares at $29 each, raising about $300 million, with proceeds primarily supporting commercial readiness for barzolvolimab.
See More
