Insider Buying: Redwood Trust (NYSE:RWT) Director Buys $192,500.00 in Stock

Redwood Trust, Inc. (NYSE:RWT) Director Greg Kubicek bought 50,000 shares of Redwood Trust stock in a transaction dated Tuesday, September 15th. The stock was purchased at an average cost of $3.85 per share, with a total value of $192,500.00. Following the completion of the acquisition, the director directly owned 127,185 shares in the company, valued at approximately $489,662.25. The trade was a 64.78% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website.

Redwood Trust Trading Up 1.7%

NYSE:RWT opened at $3.96 on Friday. The stock’s 50 day moving average price is $4.63 and its 200 day moving average price is $5.16. The company has a market capitalization of $496.79 million, a PE ratio of -98.85 and a beta of 1.37. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. Redwood Trust, Inc. has a 52-week low of $3.22 and a 52-week high of $6.97.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $89.45 million. On average, research analysts anticipate that Redwood Trust, Inc. will post 1.03 EPS for the current year.

Redwood Trust Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be given a dividend of $0.18 per share. The ex-dividend date is Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.2%. Redwood Trust’s dividend payout ratio (DPR) is -1,800.00%.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently modified their holdings of the stock. Bank of America Corp DE purchased a new stake in Redwood Trust in the 2nd quarter valued at approximately $2,032,000. Legal & General Group Plc purchased a new position in shares of Redwood Trust during the 2nd quarter worth approximately $1,349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Redwood Trust by 7,932.1% during the 2nd 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 worth $1,256,000 after buying an additional 261,759 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Redwood Trust in the 2nd quarter valued at approximately $990,000. Finally, Counterpoint Mutual Funds LLC acquired a new stake in shares of Redwood Trust in the 1st quarter valued at approximately $876,000. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Analyst Ratings Changes

Several analysts recently commented on RWT shares. Piper Sandler reduced their price target on shares of Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research report on Thursday, July 2nd. JPMorgan Chase & Co. dropped their price objective on shares of Redwood Trust from $6.50 to $6.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Citizens Jmp dropped their price objective on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating on the stock in a research note on Wednesday, July 8th. BTIG Research reaffirmed a “buy” rating and issued a $6.00 target price on shares of Redwood Trust in a report on Tuesday, July 28th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating for the company in a research note on Monday. Six equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price 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.