Redwood Trust (NYSE:RWT) Announces Quarterly Earnings Results

Redwood Trust (NYSE:RWT) released its earnings results on Thursday. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.03), Zacks reports. The firm had revenue of $27.60 million during the quarter, compared to the consensus estimate of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.01%.

Redwood Trust Stock Down 1.5 %

Shares of Redwood Trust stock traded down $0.10 on Friday, reaching $6.37. 2,810,329 shares of the company were exchanged, compared to its average volume of 764,295. Redwood Trust has a one year low of $5.45 and a one year high of $8.15. The company has a market capitalization of $843.49 million, a price-to-earnings ratio of 11.57 and a beta of 1.57. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.55. The company has a 50-day moving average of $6.58 and a 200 day moving average of $7.10.

Redwood Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were paid a dividend of $0.18 per share. The ex-dividend date was Monday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.31%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s dividend payout ratio is currently 130.91%.

Wall Street Analysts Forecast Growth

Several research firms have commented on RWT. JMP Securities restated a “market outperform” rating and issued a $8.00 target price on shares of Redwood Trust in a research note on Friday. JPMorgan Chase & Co. cut their target price on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 21st. Finally, StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research note on Monday, November 11th. Five analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $7.84.

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.