Market Runner: Will Resource Capital Corp. Short Squeeze Soon?

Market Runner: Will Resource Capital Corp. Short Squeeze Soon?

The stock of Resource Capital Corp. (NYSE:RSO) hit a new 52-week low and has $7.31 target or 14.00% below today’s $8.50 share price. The 7 months bearish chart indicates high risk for the $261.26 million company. The 1-year low was reported on Nov, 14 by Barchart.com. If the $7.31 price target is reached, the company will be worth $36.58 million less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 2.01M shares traded hands or 1373.65% up from the average. Resource Capital Corp. (NYSE:RSO) has risen 6.38% since April 12, 2016 and is uptrending. It has outperformed by 1.40% the S&P500.

Resource Capital Corp. (NYSE:RSO) Ratings Coverage

Out of 5 analysts covering Resource Capital Corp (NYSE:RSO), 2 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 40% are positive. Resource Capital Corp has been the topic of 12 analyst reports since August 6, 2015 according to StockzIntelligence Inc. JMP Securities upgraded the stock to “Mkt Outperform” rating in Friday, August 19 report. Deutsche Bank maintained the stock with “Hold” rating in Monday, August 10 report. As per Tuesday, March 29, the company rating was maintained by Deutsche Bank. The rating was initiated by FBR Capital on Thursday, December 17 with “Outperform”. The stock has “Market Perform” rating given by JMP Securities on Wednesday, March 9. The stock of Resource Capital Corp. (NYSE:RSO) earned “Market Perform” rating by Wood on Wednesday, September 2. The company was maintained on Wednesday, September 2 by Deutsche Bank.

According to Zacks Investment Research, “Resource Capital Corp. is a specialty finance company that began operations in March and intends to qualify to be taxed as a real estate investment trust for federal income tax purposes. RCC invests in a combination of real estate-related assets and, to a lesser extent, higher-yielding commercial finance assets, targeting the following asset classes commercial real estate-related assets such as B notes, mezzanine debt and commercial mortgage-backed securities; residential real estate-related assets such as residential mortgage-backed securities; and commercial finance assets such as other asset-backed securities, syndicated bank loans, equipment leases, trust preferred securities and private equity investments principally issued by financial institutions.”

More notable recent Resource Capital Corp. (NYSE:RSO) news were published by: Finance.Yahoo.com which released: “Resource Capital Corp. to Report Third Quarter 2016 Operating Results” on November 09, 2016, also Seekingalpha.com with their article: “Resource Capital’s (RSO) CEO Robert Lieber on Q3 2016 Results – Earnings Call …” published on November 14, 2016, Marketwatch.com published: “Resource Capital Corp.’s External Manager to Be Acquired by C-III Capital …” on May 23, 2016. More interesting news about Resource Capital Corp. (NYSE:RSO) were released by: Seekingalpha.com and their article: “Upgrade To Neutral: Resource Capital Corporation Now Fairly Priced” published on November 02, 2016 as well as Businesswire.com‘s news article titled: “Robbins Arroyo LLP: Resource Capital Corp. (RSO) Investors Survive Defendants …” with publication date: October 28, 2016.

RSO Company Profile

Resource Capital Corp., incorporated on January 31, 2005, is a real estate finance Company. The Company’s business divisions include Commercial Real Estate Lending, Commercial Finance, Middle Market Lending, Residential Mortgage Lending, and Corporate & Other. The Commercial Real Estate Lending operating segment includes the Company’s activities and activities related to commercial real estate loans, commercial real estate-related securities, and investments in real estate. The Commercial Finance operating segment includes the Company’s activities and activities related to bank loans, bank loan-related securities, and direct financing leases. The Middle Market Lending operating segment includes the Company’s activities and activities related to the origination and purchase of middle market loans. The Residential Mortgage Lending operating segment includes the Company’s activities and activities related to the origination and servicing of residential mortgage loans and the investment in residential mortgage-backed securities (RMBS). The Firm is externally managed by Resource Capital Manager, Inc.

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