Redwood Trust, Inc. (NYSE:RWT) Given Consensus Recommendation of “Hold” by Analysts

Redwood Trust, Inc. (NYSE:RWT) has been assigned a consensus recommendation of “Hold” from the seven brokerages that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and four have given a buy rating to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $6.75.

A number of brokerages have recently issued reports on RWT. Jones Trading cut their price target on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a report on Thursday, October 30th. BTIG Research reiterated a “buy” rating and issued a $8.50 target price on shares of Redwood Trust in a research note on Friday, September 26th. Keefe, Bruyette & Woods decreased their price target on shares of Redwood Trust from $6.50 to $5.75 and set a “market perform” rating for the company in a research report on Tuesday, August 5th. UBS Group raised their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a report on Wednesday, September 3rd. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, October 8th.

Redwood Trust Trading Down 0.5%

NYSE RWT opened at $5.55 on Friday. Redwood Trust has a one year low of $4.68 and a one year high of $7.21. The company has a debt-to-equity ratio of 20.00, a quick ratio of 40.39 and a current ratio of 40.39. The company has a market capitalization of $703.47 million, a price-to-earnings ratio of -6.86 and a beta of 1.48. The company’s 50-day simple moving average is $5.49 and its two-hundred day simple moving average is $5.74.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. The firm had revenue of $54.37 million during the quarter, compared to analysts’ expectations of $31.04 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.89%. Equities analysts forecast that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 23rd were given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 13.0%. The ex-dividend date of this dividend was Tuesday, September 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -88.89%.

Hedge Funds Weigh In On Redwood Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RWT. CIBC Bancorp USA Inc. purchased a new position in shares of Redwood Trust during the third quarter worth $82,000. Alpine Global Management LLC purchased a new position in shares of Redwood Trust during the 3rd quarter valued at about $290,000. Caxton Associates LLP lifted its holdings in shares of Redwood Trust by 63.5% in the 3rd quarter. Caxton Associates LLP now owns 112,677 shares of the real estate investment trust’s stock valued at $652,000 after buying an additional 43,752 shares during the period. Dark Forest Capital Management LP boosted its stake in shares of Redwood Trust by 55.9% in the third quarter. Dark Forest Capital Management LP now owns 235,084 shares of the real estate investment trust’s stock worth $1,361,000 after buying an additional 84,291 shares during the last quarter. Finally, XTX Topco Ltd boosted its stake in shares of Redwood Trust by 505.5% in the third quarter. XTX Topco Ltd now owns 87,875 shares of the real estate investment trust’s stock worth $509,000 after buying an additional 73,362 shares during the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.