Redwood Trust (NYSE:RWT) Hits New 12-Month Low – Here’s Why

Shares of Redwood Trust, Inc. (NYSE:RWT) reached a new 52-week low on Monday . The company traded as low as $4.99 and last traded at $4.9950, with a volume of 705894 shares trading hands. The stock had previously closed at $5.16.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Piper Sandler raised their price target on Redwood Trust from $6.00 to $6.50 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. JonesTrading reissued a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a research note on Thursday, April 30th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Zacks Research cut Redwood Trust from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. Finally, BTIG Research decreased their target price on Redwood Trust from $8.50 to $6.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $6.54.

Redwood Trust Price Performance

The company has a debt-to-equity ratio of 28.42, a current ratio of 59.63 and a quick ratio of 59.63. The company’s 50-day moving average price is $5.43 and its 200-day moving average price is $5.64. The company has a market cap of $607.94 million, a P/E ratio of -6.24 and a beta of 1.37.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd will be issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 14.8%. The ex-dividend date is Tuesday, June 23rd. Redwood Trust’s dividend payout ratio is -92.31%.

Institutional Trading of Redwood Trust

A number of institutional investors have recently modified their holdings of RWT. Wellington Management Group LLP grew its holdings in shares of Redwood Trust by 0.5% during the fourth quarter. Wellington Management Group LLP now owns 15,101,012 shares of the real estate investment trust’s stock worth $83,509,000 after buying an additional 80,529 shares in the last quarter. UBS Group AG boosted its position in Redwood Trust by 521.1% during the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock worth $21,430,000 after acquiring an additional 3,251,302 shares during the last quarter. Invesco Ltd. boosted its position in Redwood Trust by 25.4% during the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock worth $14,107,000 after acquiring an additional 516,630 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Redwood Trust by 15.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,169,992 shares of the real estate investment trust’s stock worth $12,000,000 after acquiring an additional 282,800 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Redwood Trust by 7.5% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,148,393 shares of the real estate investment trust’s stock worth $12,439,000 after acquiring an additional 149,003 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors.

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.