Redwood Trust, Inc. to Issue Quarterly Dividend of $0.18 (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) declared a quarterly dividend on Thursday, June 12th, RTT News reports. Stockholders of record on Monday, June 23rd will be paid a dividend of 0.18 per share by the real estate investment trust on Monday, June 30th. This represents a $0.72 annualized dividend and a dividend yield of 12.63%. The ex-dividend date of this dividend is Monday, June 23rd.

Redwood Trust has a payout ratio of 86.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities analysts expect Redwood Trust to earn $0.90 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 80.0%.

Redwood Trust Stock Performance

Shares of NYSE RWT opened at $5.70 on Friday. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.09. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $8.15. The stock has a 50 day moving average of $5.67 and a 200-day moving average of $6.20. The company has a market capitalization of $758.77 million, a P/E ratio of 17.27 and a beta of 1.30.

Redwood Trust (NYSE:RWT) last issued its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.03). The business had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. As a group, equities research analysts predict that Redwood Trust will post 0.78 EPS for the current year.

Analyst Ratings Changes

Several research firms recently weighed in on RWT. JPMorgan Chase & Co. lifted their price target on Redwood Trust from $5.50 to $6.00 and gave the stock a “neutral” rating in a report on Thursday, May 1st. Jones Trading reissued a “buy” rating and set a $7.00 price target on shares of Redwood Trust in a report on Friday, May 2nd. Keefe, Bruyette & Woods dropped their price target on Redwood Trust from $7.75 to $7.00 and set an “outperform” rating for the company in a report on Tuesday, May 6th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a report on Thursday, May 22nd. Finally, UBS Group lifted their price target on Redwood Trust from $6.50 to $7.00 and gave the stock a “buy” rating in a report on Monday, May 5th. Five analysts have rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $7.44.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Redwood Trust by 26.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock valued at $2,990,000 after acquiring an additional 103,893 shares in the last quarter. Jane Street Group LLC acquired a new position in shares of Redwood Trust during the 1st quarter worth $2,018,000. Finally, Strs Ohio acquired a new position in Redwood Trust in the 1st quarter worth about $149,000. 74.34% of the stock is owned by institutional investors and hedge funds.

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.