Redwood Trust, Inc. (NYSE:RWT) announced a quarterly dividend on Thursday, May 16th, RTT News reports. Investors of record on Friday, June 14th will be given a dividend of 0.30 per share by the real estate investment trust on Friday, June 28th. This represents a $1.20 annualized dividend and a dividend yield of 7.41%.
Redwood Trust has increased its dividend payment by an average of 1.8% annually over the last three years. Redwood Trust has a payout ratio of 67.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Redwood Trust to earn $1.48 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 81.1%.
NYSE RWT opened at $16.20 on Thursday. The company has a current ratio of 4.25, a quick ratio of 4.25 and a debt-to-equity ratio of 5.30. The stock has a market capitalization of $1.57 billion, a P/E ratio of 9.10 and a beta of 0.65. Redwood Trust has a 1 year low of $14.29 and a 1 year high of $17.50.
Redwood Trust (NYSE:RWT) last posted its earnings results on Wednesday, May 8th. The real estate investment trust reported $0.36 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.02). The business had revenue of $32.00 million during the quarter, compared to the consensus estimate of $44.20 million. Redwood Trust had a return on equity of 10.86% and a net margin of 24.71%. The firm’s revenue for the quarter was down 8.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.60 earnings per share. As a group, analysts anticipate that Redwood Trust will post 1.46 EPS for the current fiscal year.
Several analysts have commented on RWT shares. JMP Securities upgraded shares of Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 price objective for the company in a report on Monday, March 4th. Zacks Investment Research lowered shares of Redwood Trust from a “hold” rating to a “sell” rating in a report on Tuesday, February 19th. Credit Suisse Group started coverage on shares of Redwood Trust in a report on Tuesday, February 5th. They issued an “outperform” rating and a $18.00 price objective for the company. Finally, Nomura started coverage on shares of Redwood Trust in a report on Wednesday, March 27th. They issued a “buy” rating and a $17.50 price objective for the company. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $17.83.
In other Redwood Trust news, Director Mariann H. Byerwalter sold 9,778 shares of the firm’s stock in a transaction dated Wednesday, March 6th. The shares were sold at an average price of $15.81, for a total value of $154,590.18. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.50% of the company’s stock.
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About Redwood Trust
Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.
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