Zacks Investment Research cut shares of Redwood Trust Inc. (NYSE:RWT) from a buy rating to a hold rating in a research note published on Tuesday morning.

According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “

Several other analysts also recently weighed in on RWT. Keefe, Bruyette & Woods downgraded Redwood Trust from an outperform rating to a market perform rating and set a $14.50 price objective for the company. in a report on Tuesday, July 19th. Maxim Group downgraded shares of Redwood Trust from a buy rating to a hold rating in a report on Wednesday, August 10th. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company. Redwood Trust currently has a consensus rating of Hold and an average target price of $15.55.

Analyst Recommendations for Redwood Trust (NYSE:RWT)

Shares of Redwood Trust (NYSE:RWT) traded up 0.94% during trading on Tuesday, hitting $13.93. 28,996 shares of the stock traded hands. Redwood Trust has a 52-week low of $9.26 and a 52-week high of $15.24. The stock has a 50 day moving average of $14.05 and a 200 day moving average of $13.79. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 10.15 and a beta of 0.71.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Monday, August 8th. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.10. Redwood Trust had a return on equity of 12.09% and a net margin of 41.54%. During the same period in the prior year, the company earned $0.31 earnings per share. Analysts expect that Redwood Trust will post $1.35 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were given a $0.28 dividend. The ex-dividend date was Tuesday, September 13th. This represents a $1.12 dividend on an annualized basis and a yield of 8.12%. Redwood Trust’s dividend payout ratio is currently 85.50%.

A number of large investors have recently modified their holdings of the stock. Prudential Financial Inc. raised its stake in shares of Redwood Trust by 118.6% in the first quarter. Prudential Financial Inc. now owns 247,952 shares of the company’s stock worth $3,243,000 after buying an additional 134,500 shares in the last quarter. First Trust Advisors LP purchased a new stake in shares of Redwood Trust during the second quarter worth approximately $1,694,000. KBC Group NV raised its stake in shares of Redwood Trust by 1,381.2% in the second quarter. KBC Group NV now owns 120,571 shares of the company’s stock worth $1,665,000 after buying an additional 112,431 shares in the last quarter. GSA Capital Partners LLP purchased a new stake in shares of Redwood Trust during the second quarter worth approximately $1,237,000. Finally, Cipher Capital LP raised its stake in shares of Redwood Trust by 525.8% in the second quarter. Cipher Capital LP now owns 96,023 shares of the company’s stock worth $1,326,000 after buying an additional 80,679 shares in the last quarter. Hedge funds and other institutional investors own 86.85% of the company’s stock.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, focuses on investing in mortgage- and other real estate-related assets. The Company operates through three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Its residential mortgage banking segment consists of operating a mortgage loan conduit that acquires residential whole loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio.

5 Day Chart for NYSE:RWT

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