Shares of Redwood Trust, Inc. (NYSE:RWT) have been given a consensus rating of “Hold” by the seven ratings firms that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $17.80.

A number of analysts recently commented on RWT shares. JMP Securities raised Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 price target for the company in a research note on Monday, March 4th. Zacks Investment Research downgraded Redwood Trust from a “hold” rating to a “sell” rating in a report on Tuesday, February 19th. Credit Suisse Group started coverage on Redwood Trust in a report on Tuesday, February 5th. They issued an “outperform” rating and a $18.00 price objective for the company. Finally, Nomura started coverage on Redwood Trust in a report on Wednesday, March 27th. They issued a “buy” rating and a $17.50 price objective for the company.

In other Redwood Trust news, Director Mariann H. Byerwalter sold 9,778 shares of the stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $15.81, for a total value of $154,590.18. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.50% of the stock is currently owned by corporate insiders.

Several large investors have recently modified their holdings of RWT. BlackRock Inc. increased its holdings in shares of Redwood Trust by 12.2% during the first quarter. BlackRock Inc. now owns 16,384,220 shares of the real estate investment trust’s stock valued at $264,604,000 after acquiring an additional 1,778,088 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of Redwood Trust by 19.7% during the third quarter. Vanguard Group Inc. now owns 7,796,662 shares of the real estate investment trust’s stock valued at $126,618,000 after acquiring an additional 1,284,601 shares in the last quarter. Norges Bank bought a new position in shares of Redwood Trust during the fourth quarter valued at $18,679,000. Shoals Capital Management LP bought a new position in shares of Redwood Trust during the fourth quarter valued at $18,461,000. Finally, Boston Partners bought a new position in shares of Redwood Trust during the first quarter valued at $19,296,000. Hedge funds and other institutional investors own 86.97% of the company’s stock.

RWT stock traded down $0.09 on Thursday, reaching $16.10. The company’s stock had a trading volume of 564,876 shares, compared to its average volume of 553,918. Redwood Trust has a 12-month low of $14.29 and a 12-month high of $17.50. The firm has a market capitalization of $1.57 billion, a price-to-earnings ratio of 9.04 and a beta of 0.65. The company has a quick ratio of 4.25, a current ratio of 4.25 and a debt-to-equity ratio of 5.30.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Wednesday, May 8th. The real estate investment trust reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.02). Redwood Trust had a return on equity of 10.86% and a net margin of 24.71%. The business had revenue of $32.00 million during the quarter, compared to analysts’ expectations of $44.20 million. During the same period in the previous year, the business earned $0.60 EPS. The business’s revenue was down 8.6% compared to the same quarter last year. Equities research analysts anticipate that Redwood Trust will post 1.48 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be issued a $0.30 dividend. The ex-dividend date is Thursday, June 13th. This represents a $1.20 dividend on an annualized basis and a yield of 7.45%. Redwood Trust’s dividend payout ratio (DPR) is 67.42%.

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 two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.

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Analyst Recommendations for Redwood Trust (NYSE:RWT)

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