Redwood Trust, Inc. (NYSE:RWT) Receives $6.96 Consensus Target Price from Brokerages

Redwood Trust, Inc. (NYSE:RWT) has been assigned an average rating of “Moderate Buy” from the ten research firms that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $6.8214.

A number of research analysts recently issued reports 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 on the stock in a research report on Friday, January 23rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. Piper Sandler dropped their target price on shares of Redwood Trust from $6.50 to $6.00 and set a “neutral” rating on the stock in a research report on Thursday, April 2nd. Keefe, Bruyette & Woods increased their target price on Redwood Trust from $5.75 to $7.00 and gave the stock a “market perform” rating in a report on Wednesday, February 18th. Finally, JonesTrading reiterated a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a report on Tuesday, March 3rd.

Hedge Funds Weigh In On Redwood Trust

Large investors have recently modified their holdings of the company. Clearstead Advisors LLC lifted its holdings in shares of Redwood Trust by 192.5% in the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after purchasing an additional 3,572 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of Redwood Trust by 331.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after purchasing an additional 6,082 shares in the last quarter. CWM LLC lifted its holdings in shares of Redwood Trust by 54.2% in the 3rd quarter. CWM LLC now owns 9,514 shares of the real estate investment trust’s stock worth $55,000 after purchasing an additional 3,346 shares in the last quarter. Westbourne Investments Inc. bought a new position in shares of Redwood Trust in the 4th quarter worth $55,000. Finally, Bank of Marin bought a new position in shares of Redwood Trust in the 4th quarter worth $58,000. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Stock Up 3.1%

Redwood Trust stock opened at $5.87 on Thursday. The company has a quick ratio of 55.15, a current ratio of 55.15 and a debt-to-equity ratio of 24.34. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $6.97. The firm’s fifty day moving average is $5.84 and its 200 day moving average is $5.66. The company has a market capitalization of $733.13 million, a PE ratio of -9.61 and a beta of 1.52.

Redwood Trust (NYSE:RWT) last released its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. The company had revenue of $140.33 million for the quarter, compared to analyst estimates of $24.88 million. As a group, sell-side analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 24th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.3%. The ex-dividend date was Tuesday, March 24th. Redwood Trust’s dividend payout ratio (DPR) is currently -118.03%.

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.