Redwood Trust, Inc. (NYSE:RWT) Receives $6.75 Average Price Target from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT) have earned an average recommendation of “Moderate Buy” from the seven research firms that are currently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $6.75.

Several research analysts recently commented on the stock. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 target price for the company in a report on Friday. BTIG Research restated a “buy” rating and set a $8.50 price objective on shares of Redwood Trust in a research note on Friday, September 26th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday. Jones Trading dropped their target price on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a report on Thursday, October 30th. Finally, Wall Street Zen downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday, January 17th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted 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 during the last quarter. Jane Street Group LLC acquired a new stake in shares of Redwood Trust in the first quarter valued at approximately $2,018,000. Strs Ohio bought a new position in shares of Redwood Trust during the 1st quarter worth approximately $149,000. State of Alaska Department of Revenue increased its holdings in shares of Redwood Trust by 8.0% during the 2nd quarter. State of Alaska Department of Revenue now owns 79,299 shares of the real estate investment trust’s stock worth $467,000 after acquiring an additional 5,871 shares during the last quarter. Finally, Inspire Investing LLC raised its stake in Redwood Trust by 16.8% in the 2nd quarter. Inspire Investing LLC now owns 66,356 shares of the real estate investment trust’s stock valued at $392,000 after acquiring an additional 9,547 shares during the period. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Stock Up 3.3%

Shares of Redwood Trust stock opened at $5.82 on Friday. The firm has a market cap of $736.64 million, a PE ratio of -7.18 and a beta of 1.58. The business’s 50 day simple moving average is $5.55 and its 200 day simple moving average is $5.72. The company has a debt-to-equity ratio of 22.73, a quick ratio of 57.77 and a current ratio of 57.77. Redwood Trust has a 52-week low of $4.68 and a 52-week high of $6.73.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.04. The firm had revenue of $54.37 million during the quarter, compared to the consensus estimate of $31.04 million. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%. On average, analysts predict that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 12.4%. The ex-dividend date was Tuesday, December 23rd. Redwood Trust’s payout ratio is presently -88.89%.

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.