Redwood Trust, Inc. (NYSE:RWT) Stock Has Average Target Price of $5.84

Redwood Trust, Inc. (NYSE:RWT) has received a consensus recommendation of “Hold” from the eleven analysts that are covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and six have given a buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $5.84.

Several equities analysts recently issued reports on the stock. BTIG Research reissued a “buy” rating and set a $6.00 price target on shares of Redwood Trust in a report on Tuesday, July 28th. Keefe, Bruyette & Woods decreased their price objective on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a research note on Monday, September 14th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a report on Monday, September 21st. UBS Group cut their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research note on Friday, August 21st. Finally, Zacks Research raised Redwood Trust from a “strong sell” rating to a “hold” rating in a report on Tuesday, September 15th.

Insiders Place Their Bets

In other Redwood Trust news, Director Greg Kubicek acquired 50,000 shares of Redwood Trust stock in a transaction on Tuesday, September 15th. The shares were bought at an average price of $3.85 per share, with a total value of $192,500.00. Following the completion of the purchase, the director owned 127,185 shares in the company, valued at $489,662.25. This trade represents a 64.78% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Brooke Carillo bought 26,065 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were acquired at an average price of $3.85 per share, for a total transaction of $100,350.25. Following the acquisition, the chief financial officer directly owned 140,481 shares of the company’s stock, valued at approximately $540,851.85. The trade was a 22.78% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have bought 244,171 shares of company stock worth $948,402. 3.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp increased its position in Redwood Trust by 5.1% in the 2nd quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust’s stock valued at $24,727,000 after acquiring an additional 254,399 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of Redwood Trust by 0.4% during the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock valued at $3,385,000 after purchasing an additional 2,627 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Redwood Trust during the second quarter valued at approximately $2,032,000. Quantinno Capital Management LP increased its holdings in shares of Redwood Trust by 22.7% in the first quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock valued at $2,098,000 after purchasing an additional 69,173 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in shares of Redwood Trust in the second quarter valued at approximately $1,349,000. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Stock Performance

Shares of NYSE:RWT opened at $3.73 on Friday. The business’s fifty day moving average price is $4.48 and its two-hundred day moving average price is $5.07. Redwood Trust has a fifty-two week low of $3.22 and a fifty-two week high of $6.97. The stock has a market capitalization of $467.90 million, a price-to-earnings ratio of -93.10 and a beta of 1.37. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The company had revenue of $56.01 million during the quarter, compared to analysts’ expectations of $89.45 million. As a group, analysts predict that Redwood Trust will post 1.03 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be given a $0.18 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 19.3%. Redwood Trust’s payout ratio is presently -1,800.00%.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.