Redwood Trust (NYSE:RWT) Announces Quarterly Earnings Results

Redwood Trust (NYSE:RWT) issued its earnings results on Wednesday. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02), FiscalAI reports. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%.The firm had revenue of $87.30 million during the quarter, compared to analysts’ expectations of $24.88 million.

Redwood Trust Stock Down 1.2%

RWT traded down $0.07 on Wednesday, reaching $5.56. The company’s stock had a trading volume of 1,121,283 shares, compared to its average volume of 1,335,929. The stock has a 50 day moving average of $5.64 and a two-hundred day moving average of $5.68. Redwood Trust has a fifty-two week low of $4.68 and a fifty-two week high of $6.70. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73. The company has a market capitalization of $703.71 million, a price-to-earnings ratio of -6.86 and a beta of 1.59.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were paid a dividend of $0.18 per share. The ex-dividend date was Tuesday, December 23rd. This represents a $0.72 annualized dividend and a yield of 13.0%. Redwood Trust’s payout ratio is presently -88.89%.

Analysts Set New Price Targets

Several research firms have issued reports on RWT. Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a research note on Thursday, January 22nd. JPMorgan Chase & Co. raised Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target for the company in a report on Friday, January 23rd. Jones Trading cut their price target on Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research note on Thursday, October 30th. Finally, Wall Street Zen lowered Redwood Trust from a “hold” rating to a “sell” rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Redwood Trust has a consensus rating of “Moderate Buy” and a consensus target price of $6.75.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System raised its stake in shares of Redwood Trust by 7.3% during the third quarter. California State Teachers Retirement System now owns 122,153 shares of the real estate investment trust’s stock worth $707,000 after purchasing an additional 8,346 shares during the last quarter. Deutsche Bank AG lifted its position in shares of Redwood Trust by 7.9% during the 4th quarter. Deutsche Bank AG now owns 93,788 shares of the real estate investment trust’s stock valued at $519,000 after acquiring an additional 6,841 shares during the period. XTX Topco Ltd boosted its position in Redwood Trust by 505.5% during the third quarter. XTX Topco Ltd now owns 87,875 shares of the real estate investment trust’s stock worth $509,000 after purchasing an additional 73,362 shares in the last quarter. Franklin Resources Inc. grew its stake in Redwood Trust by 18.2% in the 4th quarter. Franklin Resources Inc. now owns 80,730 shares of the real estate investment trust’s stock valued at $446,000 after acquiring an additional 12,405 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its stake in shares of Redwood Trust by 17.9% during the 3rd quarter. Envestnet Asset Management Inc. now owns 26,720 shares of the real estate investment trust’s stock worth $155,000 after purchasing an additional 4,052 shares in the last quarter. 74.34% of the stock is owned by hedge funds and other institutional investors.

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.