Redwood Trust (NYSE:RWT) Rating Lowered to “Sell” at Wall Street Zen

Redwood Trust (NYSE:RWT) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

A number of other analysts have also weighed in on the stock. BTIG Research reaffirmed a “buy” rating and set a $8.50 target price on shares of Redwood Trust in a report on Friday, September 26th. Jones Trading reduced their price target on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research report on Thursday, October 30th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, October 8th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $6.75.

Redwood Trust Stock Performance

Shares of RWT opened at $5.97 on Friday. Redwood Trust has a 52-week low of $4.68 and a 52-week high of $6.73. The stock’s 50-day simple moving average is $5.50 and its 200 day simple moving average is $5.73. The company has a debt-to-equity ratio of 22.73, a quick ratio of 57.77 and a current ratio of 57.77. The stock has a market capitalization of $755.65 million, a price-to-earnings ratio of -7.36 and a beta of 1.58.

Redwood Trust (NYSE:RWT) last posted its earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.04. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%.The business had revenue of $54.37 million during the quarter, compared to analyst estimates of $31.04 million. Research analysts forecast that Redwood Trust will post 0.78 EPS for the current fiscal year.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently added to or reduced their stakes in the company. Concurrent Investment Advisors LLC boosted its holdings in shares of Redwood Trust by 4.7% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust’s stock worth $245,000 after purchasing an additional 1,866 shares in the last quarter. Intech Investment Management LLC raised its holdings in shares of Redwood Trust by 1.4% during the 2nd quarter. Intech Investment Management LLC now owns 151,270 shares of the real estate investment trust’s stock valued at $894,000 after buying an additional 2,033 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Redwood Trust by 7.8% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 34,177 shares of the real estate investment trust’s stock worth $202,000 after buying an additional 2,464 shares during the last quarter. Inceptionr LLC boosted its stake in Redwood Trust by 10.7% in the third quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust’s stock worth $153,000 after buying an additional 2,560 shares in the last quarter. Finally, Rhumbline Advisers grew its position in Redwood Trust by 0.8% during the third quarter. Rhumbline Advisers now owns 392,058 shares of the real estate investment trust’s stock valued at $2,270,000 after acquiring an additional 3,147 shares during the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.