Shares of Redwood Trust, Inc. (NYSE:RWT) have been assigned an average rating of “Buy” from the seven analysts that are presently covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $17.80.
A number of research analysts recently weighed in on RWT shares. Credit Suisse Group started coverage on Redwood Trust in a research note on Tuesday, February 5th. They issued an “outperform” rating and a $18.00 price objective on the stock. Zacks Investment Research downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research note on Tuesday, February 19th. JMP Securities raised Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 price objective on the stock in a research note on Monday, March 4th. Finally, Nomura started coverage on Redwood Trust in a research note on Wednesday, March 27th. They issued a “buy” rating and a $17.50 price objective on the stock.
Shares of RWT stock traded up $0.01 during trading on Thursday, reaching $16.17. The company had a trading volume of 436,039 shares, compared to its average volume of 510,306. The company has a debt-to-equity ratio of 5.30, a quick ratio of 4.25 and a current ratio of 4.25. Redwood Trust has a one year low of $14.29 and a one year high of $17.50. The company has a market capitalization of $1.57 billion, a price-to-earnings ratio of 9.08 and a beta of 0.65.
Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Wednesday, May 8th. The real estate investment trust reported $0.36 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.38 by ($0.02). Redwood Trust had a net margin of 24.71% and a return on equity of 10.86%. The company had revenue of $32.00 million during the quarter, compared to the consensus estimate of $44.20 million. During the same period in the previous year, the business posted $0.60 earnings per share. The firm’s revenue was down 8.6% on a year-over-year basis. On average, analysts forecast that Redwood Trust will post 1.46 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be given a dividend of $0.30 per share. The ex-dividend date is Thursday, June 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 7.42%. Redwood Trust’s payout ratio is currently 67.42%.
In other news, Director Mariann H. Byerwalter sold 9,778 shares of the business’s stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $15.81, for a total transaction of $154,590.18. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.50% of the company’s stock.
Large investors have recently bought and sold shares of the business. Cedar Wealth Management LLC boosted its position in shares of Redwood Trust by 112.5% during the fourth quarter. Cedar Wealth Management LLC now owns 1,700 shares of the real estate investment trust’s stock worth $26,000 after buying an additional 900 shares during the period. Truvestments Capital LLC bought a new position in shares of Redwood Trust during the first quarter worth about $28,000. Oregon Public Employees Retirement Fund bought a new position in shares of Redwood Trust during the fourth quarter worth about $32,000. Legacy Bridge LLC bought a new position in shares of Redwood Trust during the first quarter worth about $32,000. Finally, Bank of Montreal Can grew its holdings in shares of Redwood Trust by 195.1% during the fourth quarter. Bank of Montreal Can now owns 2,526 shares of the real estate investment trust’s stock worth $38,000 after buying an additional 1,670 shares in the last quarter. 82.64% of the stock is owned by hedge funds and other institutional investors.
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 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.
Further Reading: Initial Public Offering (IPO)
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