Redwood Trust, Inc. (NYSE:RWT) Receives Average Rating of “Hold” from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT) have been given an average recommendation of “Hold” by the seven analysts that are presently covering the company, Marketbeat Ratings 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 target price among brokerages that have issued a report on the stock in the last year is $6.75.

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, October 8th. BTIG Research restated a “buy” rating and set a $8.50 price target on shares of Redwood Trust in a report on Friday, September 26th. Jones Trading lowered their price objective on Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research report on Thursday, October 30th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday. Finally, UBS Group lifted their target price on Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a research report on Wednesday, September 3rd.

Institutional Trading of Redwood Trust

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. grew its stake in shares of Redwood Trust by 2.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,447,700 shares of the real estate investment trust’s stock valued at $8,788,000 after buying an additional 36,547 shares in the last quarter. Nuveen LLC purchased a new stake in Redwood Trust during the first quarter worth about $1,983,000. Quantbot Technologies LP acquired a new stake in shares of Redwood Trust during the first quarter worth about $37,000. AlphaQuest LLC boosted its stake in shares of Redwood Trust by 165.5% in the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock valued at $52,000 after purchasing an additional 5,354 shares during the period. Finally, Ceredex Value Advisors LLC grew its holdings in shares of Redwood Trust by 24.4% in the first quarter. Ceredex Value Advisors LLC now owns 1,479,950 shares of the real estate investment trust’s stock valued at $8,983,000 after purchasing an additional 289,900 shares in the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Stock Down 0.5%

Shares of NYSE RWT opened at $5.51 on Tuesday. The company has a current ratio of 57.77, a quick ratio of 57.77 and a debt-to-equity ratio of 22.73. The company has a 50-day moving average of $5.44 and a 200 day moving average of $5.74. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $6.73. The stock has a market cap of $697.37 million, a PE ratio of -6.80 and a beta of 1.59.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.04. The business had revenue of $54.37 million during the quarter, compared to analyst estimates of $31.04 million. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%. As a group, sell-side analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd will be given a dividend of $0.18 per share. The ex-dividend date is Tuesday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 13.1%. Redwood Trust’s dividend payout ratio (DPR) is currently -88.89%.

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.