Redwood Trust, Inc. (NYSE:RWT) Receives Consensus Rating of “Hold” from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT) have earned an average recommendation of “Hold” from the eleven ratings firms that are presently covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $5.9375.

A number of research analysts recently weighed in on the company. Wells Fargo & Company dropped their price objective on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 29th. Keefe, Bruyette & Woods reduced their target price on Redwood Trust from $6.00 to $5.50 and set an “outperform” rating for the company in a report on Wednesday, July 29th. Piper Sandler decreased their target price on shares of Redwood Trust from $6.50 to $5.50 and set a “neutral” rating on the stock in a research report on Thursday, July 2nd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Finally, JPMorgan Chase & Co. cut their price target on shares of Redwood Trust from $6.50 to $6.00 and set an “overweight” rating for the company in a report on Friday, July 17th.

Redwood Trust Price Performance

Shares of RWT opened at $4.51 on Monday. Redwood Trust has a twelve month low of $4.19 and a twelve month high of $6.97. The stock’s 50 day moving average is $4.76 and its two-hundred day moving average is $5.29. The firm has a market capitalization of $566.50 million, a PE ratio of -112.72 and a beta of 1.37. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69.

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

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 16.0%. The ex-dividend date was Tuesday, June 23rd. Redwood Trust’s dividend payout ratio is presently -1,800.00%.

Institutional Investors Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Redwood Trust by 26.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock valued at $2,990,000 after purchasing an additional 103,893 shares in the last quarter. Jane Street Group LLC purchased a new stake in Redwood Trust during the first quarter worth $2,018,000. Strs Ohio purchased a new stake in Redwood Trust during the first quarter worth $149,000. XTX Topco Ltd grew its holdings in Redwood Trust by 35.4% in the second quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock valued at $86,000 after purchasing an additional 3,795 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in Redwood Trust by 331.8% in 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 purchasing an additional 6,082 shares during the last quarter. 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.