We recently published a list of 10 Stocks Insiders Are Buying In March. In this article, we are going to take a look at where Ready Capital Corporation (NYSE:RC) stands against other stocks that insiders are buying in March.
As President Donald Trump’s on-again, off-again tariff policy continues, so does turbulence in the stock market. The broader market declined by 10.1% from its record close in February, officially entering a correction.
According to Adam Turnquist, chief technical strategist for LPL Financial, uncertainty about tariffs is among the main culprits behind the selling pressure. This week, all three major indexes have declined by more than 4%, reports CNBC.
On Wednesday, the Bureau of Labor Statistics reported that February’s prices for food and services rose less than many experts expected. The consumer price index increased by a seasonally adjusted 0.2% for the month, bringing the annual inflation rate to 2.8%, slightly below economists’ projections.
Amid all this uncertainty, the question is: Could this be the right time to buy the best stocks? History has shown that buying undervalued stocks often presents great growth opportunities. Will there be growth soon? It’s hard to predict, though some analysts are betting on the growth potential of AI technology.
At times like these, it might be useful to look over recent insider trades, because executives usually have more insights into their companies. For example, when a CEO or CFO buys company stock, it can indicate strong confidence in the business’s future.
Conversely, insider selling doesn’t always indicate a lack of confidence; it can result from personal financial needs or efforts to diversify investment portfolios. Executives often carry out these transactions through pre-arranged plans (such as 10b5-1 plans), designed to prevent any perception of improper timing.
While insider activity can provide valuable insights, it’s crucial to evaluate it alongside other factors, including the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are buying in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders bought shares this month. With each stock, we note the number of insiders who recently bought shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a city’s skyline dotted with tall office buildings, symbolizing the success of the Real Estate finance companies.
Ready Capital Corporation (NYSE:RC)
Number of Insiders Buying: 5
Market Capitalization: $830.03 million
Ready Capital Corporation (NYSE:RC) is a real estate finance company that operates in two segments: LLM Commercial Real Estate and Small Business Lending. The New York, New York-based company provides various professional services, including originating, acquiring, financing, and servicing LLM commercial real estate loans, SBA loans, residential mortgages, construction loans, USDA loans, and mortgage-backed securities.
Recently, the company confirmed it has completed the previously announced acquisition of United Development Funding IV. The combined company will conduct business under the name “Ready Capital Corporation” and will continue to trade on the New York Stock Exchange under the ticker symbol “RC.”
In March, five insiders, including the company’s CEO, and CIO, purchased a total of $653,415 worth of Ready Capital Corporation shares at a price of $5.07 per share. Since the beginning of the year, the stock declined 25.81% and is now trading at $5.06 per share. Over the past 12 months, the stock lost 41.64%.
In 2024, the company had a net loss of $430.4 million.
Based on nine analysts’ assessments, Ready Capital (NYSE:RC) stock is a “Hold” with a price target of $7.86, writes MarketBeat.
Overall, RC ranks 6th on our list of stocks that insiders are buying in March. While we acknowledge the potential of RC, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.