Redwood Trust, Inc. (NYSE:RWT) was the recipient of unusually large options trading activity on Tuesday. Investors purchased 2,367 call options on the company. This is an increase of 731% compared to the typical volume of 285 call options.

A number of analysts have recently issued reports on RWT shares. ValuEngine cut shares of Redwood Trust from a “hold” rating to a “sell” rating in a research note on Tuesday, March 17th. Zacks Investment Research cut shares of Redwood Trust from a “buy” rating to a “hold” rating in a research note on Tuesday, January 21st. JMP Securities raised shares of Redwood Trust from a “market perform” rating to an “outperform” rating and set a $10.00 price objective for the company in a research note on Monday. Finally, Piper Sandler started coverage on shares of Redwood Trust in a research note on Friday, January 31st. They issued a “neutral” rating and a $17.50 price objective for the company. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the stock. Redwood Trust has a consensus rating of “Hold” and an average target price of $15.88.

Shares of NYSE:RWT opened at $3.85 on Thursday. The company has a debt-to-equity ratio of 7.37, a quick ratio of 6.31 and a current ratio of 6.31. The firm has a fifty day moving average price of $14.90 and a 200 day moving average price of $16.21. Redwood Trust has a fifty-two week low of $2.59 and a fifty-two week high of $18.01. The firm has a market cap of $484.86 million, a price-to-earnings ratio of 2.60 and a beta of 0.63.

Redwood Trust (NYSE:RWT) last issued its earnings results on Thursday, February 27th. The real estate investment trust reported $0.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.36 by $0.09. Redwood Trust had a net margin of 24.07% and a return on equity of 11.00%. The firm had revenue of $45.00 million during the quarter, compared to analyst estimates of $40.25 million. During the same quarter in the prior year, the business earned $0.39 earnings per share. As a group, research analysts predict that Redwood Trust will post 1.57 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Investors of record on Monday, March 16th will be given a dividend of $0.32 per share. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 33.25%. Redwood Trust’s dividend payout ratio is currently 81.01%.

Large investors have recently modified their holdings of the stock. NumerixS Investment Technologies Inc lifted its position in Redwood Trust by 38.9% during the fourth quarter. NumerixS Investment Technologies Inc now owns 2,500 shares of the real estate investment trust’s stock valued at $41,000 after purchasing an additional 700 shares during the last quarter. Verus Capital Partners LLC bought a new position in Redwood Trust during the fourth quarter valued at $44,000. PNC Financial Services Group Inc. lifted its position in Redwood Trust by 29.5% during the fourth quarter. PNC Financial Services Group Inc. now owns 9,667 shares of the real estate investment trust’s stock valued at $160,000 after purchasing an additional 2,203 shares during the last quarter. First Allied Advisory Services Inc. bought a new position in Redwood Trust during the fourth quarter valued at $172,000. Finally, First Republic Investment Management Inc. bought a new position in Redwood Trust during the fourth quarter valued at $189,000. Hedge funds and other institutional investors own 95.65% of the company’s stock.

About Redwood Trust

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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