Redwood Trust, Inc. Declares Quarterly Dividend of $0.18 (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) declared a quarterly dividend on Thursday, September 10th. Shareholders of record on Wednesday, September 23rd will be paid a dividend of 0.18 per share by the real estate investment trust on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 20.0%. The ex-dividend date of this dividend is Wednesday, September 23rd.

Redwood Trust has decreased its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 1 years. Redwood Trust has a payout ratio of 86.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Research analysts expect Redwood Trust to earn $1.14 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 63.2%.

Redwood Trust Stock Performance

RWT opened at $3.60 on Friday. The company has a 50 day simple moving average of $4.72 and a two-hundred day simple moving average of $5.23. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. The firm has a market cap of $452.20 million, a P/E ratio of -89.98 and a beta of 1.37. Redwood Trust has a 1-year low of $3.22 and a 1-year high of $6.97.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The firm had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. Equities analysts forecast that Redwood Trust will post 1.03 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Keefe, Bruyette & Woods decreased their price target on Redwood Trust from $6.00 to $5.50 and set an “outperform” rating on the stock in a report on Wednesday, July 29th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Zacks Research cut Redwood Trust from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. decreased their target price on Redwood Trust from $6.50 to $6.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Finally, Piper Sandler lowered their price target on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating on the stock in a report on Thursday, July 2nd. Six equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Redwood Trust presently has a consensus rating of “Hold” and a consensus target price of $5.94.

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.