Redwood Trust, Inc. (NYSE:RWT) Receives Average Recommendation of “Hold” from Brokerages

Redwood Trust, Inc. (NYSE:RWT) has earned a consensus recommendation of “Hold” from the seven ratings firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $6.8750.

Several research firms have recently weighed in on RWT. Keefe, Bruyette & Woods reduced their price objective on shares of Redwood Trust from $6.50 to $5.75 and set a “market perform” rating for the company in a research report on Tuesday, August 5th. JMP Securities reduced their price objective on shares of Redwood Trust from $7.50 to $7.00 and set a “market outperform” rating for the company in a research report on Thursday, July 31st. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, October 8th. BTIG Research reaffirmed a “buy” rating and set a $8.50 price objective on shares of Redwood Trust in a research note on Friday, September 26th. Finally, Wall Street Zen lowered shares of Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Saturday, August 2nd.

Redwood Trust Stock Performance

NYSE:RWT opened at $5.65 on Thursday. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $7.90. The company has a current ratio of 40.39, a quick ratio of 40.39 and a debt-to-equity ratio of 20.00. The company has a 50-day moving average of $5.95 and a 200-day moving average of $5.82. The firm has a market cap of $730.09 million, a price-to-earnings ratio of -8.83 and a beta of 1.43.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.01). Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. The business had revenue of ($38.10) million for the quarter, compared to the consensus estimate of $31.00 million. Analysts forecast that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 23rd were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Tuesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 12.7%. Redwood Trust’s dividend payout ratio is currently -112.50%.

Institutional Trading of Redwood Trust

Hedge funds have recently bought and sold shares of the company. CWM LLC lifted its stake in Redwood Trust by 270.5% during the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 4,503 shares in the last quarter. Quantbot Technologies LP purchased a new stake in Redwood Trust during the first quarter valued at about $37,000. Russell Investments Group Ltd. lifted its stake in Redwood Trust by 331.8% during the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after buying an additional 6,082 shares in the last quarter. AlphaQuest LLC lifted its stake in Redwood Trust by 165.5% during the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock valued at $52,000 after buying an additional 5,354 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its position in shares of Redwood Trust by 136.9% in the second quarter. Tower Research Capital LLC TRC now owns 10,823 shares of the real estate investment trust’s stock worth $64,000 after purchasing an additional 6,255 shares in the last quarter. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.