Brooke Carillo Buys 26,065 Shares of Redwood Trust (NYSE:RWT) Stock

Redwood Trust, Inc. (NYSE:RWT) CFO Brooke Carillo bought 26,065 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were acquired at an average cost of $3.85 per share, with a total value of $100,350.25. Following the purchase, the chief financial officer directly owned 140,481 shares of the company’s stock, valued at approximately $540,851.85. This represents a 22.78% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Redwood Trust Stock Performance

Shares of RWT opened at $3.90 on Thursday. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The business’s 50 day moving average price is $4.66 and its 200-day moving average price is $5.17. Redwood Trust, Inc. has a 52 week low of $3.22 and a 52 week high of $6.97. The stock has a market cap of $490.51 million, a P/E ratio of -97.60 and a beta of 1.37.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The company had revenue of $56.01 million during the quarter, compared to analyst estimates of $89.45 million. Equities research analysts anticipate that Redwood Trust, Inc. will post 1.03 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.4%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio is currently -1,800.00%.

Redwood Trust News Summary

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Redwood Trust insiders made substantial open-market purchases near $3.84–$3.98 per share. CEO Christopher Abate bought 100,000 shares, President Dashiell Robinson purchased 63,211, CFO Brooke Carillo acquired 26,065, and Director Greg Kubicek bought 50,000. The purchases increased their holdings by roughly 17% to 65% and may signal that management and the board consider RWT undervalued. Redwood Trust insider purchase filing
• Positive Sentiment: Redwood completed a private offering of $205 million in 7.00% convertible notes and a related restructuring. The proceeds should improve liquidity and financial flexibility for its residential mortgage-credit business. Redwood Trust convertible notes offering
• Neutral Sentiment: Redwood declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and an indicated yield of about 18%. The high yield may attract income-oriented investors, but the reported negative payout ratio highlights concerns about dividend sustainability.
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RWT from $5.50 to $4.75 while retaining an “outperform” rating. The reduced target signals weaker expectations and may pressure sentiment, although it remains above recent trading levels. Keefe, Bruyette & Woods lowers Redwood Trust price target
• Negative Sentiment: The convertible financing could eventually dilute existing shareholders if the notes convert into equity. Redwood’s latest results also showed revenue of $56.01 million versus an $89.45 million consensus estimate, despite adjusted earnings modestly exceeding expectations.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE purchased a new position in Redwood Trust in the second quarter worth about $2,032,000. Legal & General Group Plc purchased a new stake in shares of Redwood Trust during the 2nd quarter valued at about $1,349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Redwood Trust by 7,932.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust’s stock valued at $1,256,000 after buying an additional 261,759 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Redwood Trust during the second quarter valued at approximately $990,000. Finally, Counterpoint Mutual Funds LLC bought a new position in Redwood Trust in the first quarter worth approximately $876,000. Institutional investors own 74.34% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. UBS Group lowered their price target on Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research report on Friday, August 21st. JonesTrading reduced their price objective on shares of Redwood Trust from $6.25 to $6.00 and set a “buy” rating for the company in a research note on Tuesday, July 28th. JPMorgan Chase & Co. decreased their target price on shares of Redwood Trust from $6.50 to $6.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Keefe, Bruyette & Woods dropped their target price on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a research note on Monday. Finally, BTIG Research reiterated a “buy” rating and set a $6.00 price target on shares of Redwood Trust in a report on Tuesday, July 28th. Six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $5.84.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.