Redwood Trust (NYSE:RWT) Stock Rating Lowered by Zacks Research

Redwood Trust (NYSE:RWT) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday, Zacks reports.

Several other research firms also recently issued reports on RWT. Citizens Jmp reduced their price target on shares of Redwood Trust from $6.00 to $4.00 and set a “market outperform” rating for the company in a research report on Thursday. Keefe, Bruyette & Woods decreased their price target 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, September 14th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Monday, September 21st. Citigroup restated a “market outperform” rating on shares of Redwood Trust in a report on Thursday. Finally, Piper Sandler dropped their price objective on shares of Redwood Trust from $5.25 to $3.75 and set a “neutral” rating on the stock in a research note on Friday, October 9th. Seven analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $5.25.

Redwood Trust Trading Up 4.9%

Shares of Redwood Trust stock opened at $3.10 on Wednesday. The company has a debt-to-equity ratio of 31.69, a quick ratio of 67.49 and a current ratio of 67.49. Redwood Trust has a 52 week low of $2.91 and a 52 week high of $6.97. The stock has a 50 day moving average price of $4.10 and a two-hundred day moving average price of $4.84. The stock has a market capitalization of $388.76 million, a PE ratio of -77.36 and a beta of 1.45.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, beating 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 firm had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. As a group, equities analysts anticipate that Redwood Trust will post 1.01 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, President Dashiell I. Robinson purchased 63,211 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The stock was acquired at an average price of $3.98 per share, for a total transaction of $251,579.78. Following the completion of the acquisition, the president owned 395,050 shares of the company’s stock, valued at $1,572,299. This represents a 19.05% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Christopher J. Abate purchased 100,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was bought at an average cost of $3.84 per share, with a total value of $384,000.00. Following the completion of the transaction, the chief executive officer directly owned 679,283 shares in the company, valued at $2,608,446.72. The trade was a 17.26% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 244,171 shares of company stock worth $948,402 over the last three months. Company insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Redwood Trust

Several large investors have recently bought and sold shares of the stock. Envestnet Asset Management Inc. grew its position in Redwood Trust by 371.2% in the 2nd quarter. Envestnet Asset Management Inc. now owns 107,266 shares of the real estate investment trust’s stock worth $508,000 after purchasing an additional 84,502 shares in the last quarter. State Street Corp grew its holdings in shares of Redwood Trust by 5.1% in the second quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust’s stock valued at $24,727,000 after acquiring an additional 254,399 shares in the last quarter. WINTON GROUP Ltd grew its holdings in shares of Redwood Trust by 10.8% in the second quarter. WINTON GROUP Ltd now owns 76,700 shares of the real estate investment trust’s stock valued at $364,000 after acquiring an additional 7,500 shares in the last quarter. Engineers Gate Manager LP grew its holdings in shares of Redwood Trust by 33.5% in the second quarter. Engineers Gate Manager LP now owns 45,400 shares of the real estate investment trust’s stock valued at $215,000 after acquiring an additional 11,400 shares in the last quarter. Finally, Squarepoint Ops LLC purchased a new stake in shares of Redwood Trust during the second quarter valued at approximately $157,000. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE: RWT) is a specialty finance company focused on housing credit and residential real estate finance. Organized as a real estate investment trust, the company invests in and manages residential credit assets, including mortgage loans and mortgage-related securities, with an emphasis on assets that are not typically financed through traditional government-sponsored mortgage programs.

Redwood operates through several business platforms. Its residential mortgage banking activities include acquiring and financing prime jumbo loans and other residential mortgages, which may be held for investment or placed into private-label securitizations.