Redwood Trust (NYSE:RWT) Sets New 1-Year Low – Should You Sell?

Redwood Trust, Inc. (NYSE:RWT)’s share price hit a new 52-week low on Monday . The stock traded as low as $4.67 and last traded at $4.80, with a volume of 3393367 shares trading hands. The stock had previously closed at $4.81.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. BTIG Research decreased their target price on Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. Zacks Research cut shares of Redwood Trust from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Finally, Piper Sandler boosted their price target on shares of Redwood Trust from $6.00 to $6.50 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Redwood Trust currently has a consensus rating of “Hold” and an average price target of $6.54.

Redwood Trust Price Performance

The company has a debt-to-equity ratio of 28.42, a quick ratio of 59.63 and a current ratio of 59.63. The stock has a market capitalization of $601.66 million, a PE ratio of -6.16 and a beta of 1.37. The stock’s 50 day moving average is $5.35 and its two-hundred day moving average is $5.62.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 23rd will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 15.0%. The ex-dividend date is Tuesday, June 23rd. Redwood Trust’s dividend payout ratio (DPR) is -92.31%.

Institutional Trading of Redwood Trust

Institutional investors have recently made changes to their positions in the company. Clearstead Advisors LLC raised its stake in Redwood Trust by 192.5% in the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after purchasing an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after purchasing an additional 6,082 shares during the last quarter. Westbourne Investments Inc. acquired a new stake in Redwood Trust during the 4th quarter worth $55,000. Bank of Marin purchased a new stake in shares of Redwood Trust during the fourth quarter worth $58,000. Finally, Abel Hall LLC purchased a new stake in shares of Redwood Trust during the fourth quarter worth $58,000. 74.34% of the stock is owned by institutional investors and hedge funds.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.