Redwood Trust, Inc. (NYSE:RWT) Receives Average Recommendation of “Moderate Buy” from Brokerages

Redwood Trust, Inc. (NYSE:RWT) has been assigned an average rating of “Moderate Buy” from the eight brokerages that are covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, one has 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 target price among brokerages that have issued ratings on the stock in the last year is $6.75.

RWT has been the subject of a number of recent research reports. JPMorgan Chase & Co. raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price objective for the company in a research report on Friday, January 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Thursday, January 22nd. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a report on Sunday. JonesTrading dropped their price target on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Finally, Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th.

Institutional Trading of Redwood Trust

Several hedge funds have recently bought and sold shares of the company. Clearstead Advisors LLC grew its position in 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 during the last quarter. CWM LLC boosted its position in shares of Redwood Trust by 270.5% during the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock worth $36,000 after buying an additional 4,503 shares during the period. Russell Investments Group Ltd. grew its holdings in 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 buying an additional 6,082 shares in the last quarter. Westbourne Investments Inc. bought a new position in Redwood Trust in the 4th quarter worth approximately $55,000. Finally, Bank of Marin acquired a new stake in Redwood Trust in the 4th quarter valued at approximately $58,000. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Stock Performance

Shares of RWT opened at $6.47 on Wednesday. The stock has a market capitalization of $819.63 million, a PE ratio of -10.61 and a beta of 1.59. The business’s fifty day moving average price is $5.71 and its 200 day moving average price is $5.71. The company has a debt-to-equity ratio of 22.68, a current ratio of 57.77 and a quick ratio of 57.77. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $6.97.

Redwood Trust (NYSE:RWT) last released its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.11. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.80%. The firm had revenue of $87.30 million during the quarter, compared to analyst estimates of $24.88 million. Equities research analysts forecast that Redwood Trust will post 0.78 EPS for the current year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 11.1%. The ex-dividend date was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -118.03%.

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.