Redwood Trust (NYSE:RWT) CEO Christopher Abate Acquires 100,000 Shares of Stock

Redwood Trust, Inc. (NYSE:RWT) CEO Christopher Abate bought 100,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was bought at an average cost of $3.84 per share, for a total transaction of $384,000.00. Following the completion of the acquisition, the chief executive officer owned 679,283 shares in the company, valued at $2,608,446.72. This trade represents a 17.26% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Redwood Trust Stock Performance

NYSE RWT traded up $0.14 on Tuesday, hitting $3.98. 6,907,639 shares of the company traded hands, compared to its average volume of 2,336,734. The business’s 50 day moving average price is $4.69 and its 200-day moving average price is $5.20. Redwood Trust, Inc. has a 52-week low of $3.22 and a 52-week high of $6.97. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69. The company has a market capitalization of $499.30 million, a price-to-earnings ratio of -99.10 and a beta of 1.37.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping 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 business had revenue of $56.01 million during the quarter, compared to analysts’ expectations of $89.45 million. Equities analysts expect that Redwood Trust, Inc. will post 1.03 earnings per share for the current year.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 18.1%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio is currently -1,800.00%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Bank of America Corp DE purchased a new position in Redwood Trust during the second quarter worth $2,032,000. Legal & General Group Plc bought a new position in shares of Redwood Trust during the 2nd quarter worth $1,349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in 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 acquiring an additional 261,759 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Redwood Trust during the 2nd quarter worth about $990,000. Finally, Counterpoint Mutual Funds LLC purchased a new position in Redwood Trust during the 1st quarter valued at about $876,000. Institutional investors own 74.34% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on RWT shares. UBS Group dropped their price target on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research report on Friday, August 21st. JPMorgan Chase & Co. dropped 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. Citizens Jmp lowered their price objective on Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating on the stock in a research report on Wednesday, July 8th. Piper Sandler dropped their price objective on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company cut their target price on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 29th. Six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average 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.