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 research 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. “
A number of other brokerages have also commented on RWT. Maxim Group lowered shares of Redwood Trust from a “buy” rating to a “hold” rating in a report on Wednesday, August 10th. Keefe, Bruyette & Woods lowered shares of Redwood Trust from an “outperform” rating to a “market perform” rating and set a $14.50 target price on the stock. in a research note on Tuesday, July 19th. Five research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Redwood Trust has an average 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% on Tuesday, reaching $13.77. 14,433 shares of the company were exchanged. The stock has a 50 day moving average price of $14.07 and a 200-day moving average price of $13.79. The stock has a market capitalization of $1.06 billion, a P/E 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.
Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Monday, August 8th. The company reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.10. Redwood Trust had a net margin of 41.54% and a return on equity of 12.09%. During the same quarter last year, the company posted $0.31 EPS. On average, equities analysts expect that Redwood Trust will post $1.35 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were given a $0.28 dividend. The ex-dividend date was Tuesday, September 13th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 8.12%. Redwood Trust’s dividend payout ratio is 85.50%.
Several hedge funds have recently made changes to their positions in RWT. Public Employees Retirement System of Ohio increased its stake in shares of Redwood Trust by 6.7% in the second quarter. Public Employees Retirement System of Ohio now owns 7,329 shares of the company’s stock worth $101,000 after buying an additional 461 shares in the last quarter. Emerald Acquisition Ltd. purchased a new stake in shares of Redwood Trust during the second quarter worth $115,000. Cubist Systematic Strategies LLC purchased a new stake in shares of Redwood Trust during the second quarter worth $141,000. Teacher Retirement System of Texas increased its stake in shares of Redwood Trust by 7.1% in the second quarter. Teacher Retirement System of Texas now owns 10,846 shares of the company’s stock worth $150,000 after buying an additional 716 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of Redwood Trust during the second quarter worth $151,000. Institutional investors and hedge funds 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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