Redwood Trust Inc. (RWT) Lowered to “Hold” at Zacks Investment Research
Redwood Trust Inc. (NYSE:RWT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “
Several other equities analysts have also recently weighed in on the company. Keefe, Bruyette & Woods cut Redwood Trust from an “outperform” rating to a “market perform” rating and set a $14.50 price objective on the stock. in a report on Tuesday, July 19th. Maxim Group cut Redwood Trust from a “buy” rating to a “hold” rating in a report on Wednesday, August 10th. Five investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Redwood Trust presently has a consensus rating of “Hold” and a consensus target price of $15.55.
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Shares of Redwood Trust (NYSE:RWT) traded down 0.22% during midday trading on Tuesday, hitting $13.77. 14,433 shares of the stock traded hands. The company has a market capitalization of $1.06 billion, a PE ratio of 10.04 and a beta of 0.71. Redwood Trust has a 12-month low of $9.26 and a 12-month high of $15.24. The firm’s 50 day moving average price is $14.07 and its 200 day moving average price is $13.79.
Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Monday, August 8th. The company reported $0.47 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.10. Redwood Trust had a return on equity of 12.09% and a net margin of 41.54%. During the same quarter in the previous year, the firm posted $0.31 EPS. Analysts expect that Redwood Trust will post $1.35 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 8.12%. The ex-dividend date was Tuesday, September 13th. Redwood Trust’s dividend payout ratio is currently 85.50%.
Several large investors have recently made changes to their positions in the company. Hilton Capital Management LLC boosted its stake in shares of Redwood Trust by 3.9% in the second quarter. Hilton Capital Management LLC now owns 772,682 shares of the company’s stock worth $10,671,000 after buying an additional 28,886 shares in the last quarter. TIAA CREF Investment Management LLC boosted its stake in shares of Redwood Trust by 4.4% in the first quarter. TIAA CREF Investment Management LLC now owns 304,394 shares of the company’s stock worth $3,981,000 after buying an additional 12,746 shares in the last quarter. Prudential Financial Inc. boosted its stake in shares of Redwood Trust by 118.6% in the first quarter. Prudential Financial Inc. now owns 247,952 shares of the company’s stock worth $3,243,000 after buying an additional 134,500 shares in the last quarter. Bayesian Capital Management LP bought a new stake in shares of Redwood Trust during the first quarter worth about $239,000. Finally, Virginia Retirement System bought a new stake in shares of Redwood Trust during the first quarter worth about $294,000. Institutional investors own 86.85% of the company’s stock.
About Redwood Trust
Redwood Trust, Inc, together with its subsidiaries, focuses on investing in mortgage- and other real estate-related assets. The Company operates through three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Its residential mortgage banking segment consists of operating a mortgage loan conduit that acquires residential whole loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio.
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