Redwood Trust (NYSE:RWT) Posts Quarterly Earnings Results

Redwood Trust (NYSE:RWT) posted its quarterly earnings results on Wednesday. The real estate investment trust reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02), FiscalAI reports. The company had revenue of $87.30 million for the quarter, compared to analyst estimates of $24.88 million. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%.

Redwood Trust Trading Down 1.2%

Shares of NYSE RWT traded down $0.07 during midday trading on Wednesday, reaching $5.56. 1,121,483 shares of the stock were exchanged, compared to its average volume of 1,335,929. The stock has a 50 day moving average price of $5.64 and a 200-day moving average price of $5.68. The company has a current ratio of 57.77, a quick ratio of 57.77 and a debt-to-equity ratio of 22.73. The company has a market capitalization of $703.71 million, a P/E ratio of -6.86 and a beta of 1.59. Redwood Trust has a 52-week low of $4.68 and a 52-week high of $6.70.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 13.0%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is currently -88.89%.

Analyst Ratings Changes

Several brokerages have weighed in on RWT. Jones Trading lowered their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. JPMorgan Chase & Co. upgraded Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target for the company in a research report on Friday, January 23rd. Finally, Wall Street Zen downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $6.75.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Inceptionr LLC boosted its holdings in shares of Redwood Trust by 150.1% during the fourth quarter. Inceptionr LLC now owns 65,963 shares of the real estate investment trust’s stock worth $365,000 after purchasing an additional 39,586 shares during the last quarter. Deutsche Bank AG lifted its position in Redwood Trust by 7.9% during the fourth quarter. Deutsche Bank AG now owns 93,788 shares of the real estate investment trust’s stock worth $519,000 after buying an additional 6,841 shares during the period. Fox Run Management L.L.C. acquired a new stake in Redwood Trust in the 4th quarter worth about $140,000. Franklin Resources Inc. boosted its stake in Redwood Trust by 18.2% in the 4th quarter. Franklin Resources Inc. now owns 80,730 shares of the real estate investment trust’s stock worth $446,000 after buying an additional 12,405 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Redwood Trust by 106.5% in the 4th quarter. PNC Financial Services Group Inc. now owns 15,062 shares of the real estate investment trust’s stock valued at $83,000 after buying an additional 7,767 shares during the period. 74.34% of the stock is currently owned by institutional investors and hedge funds.

About Redwood Trust

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.