Redwood Trust, Inc. (NYSE:RWT) Receives Average Recommendation of “Hold” from Analysts

Redwood Trust, Inc. (NYSE:RWT) has received a consensus rating of “Hold” from the seven research firms that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have given a buy recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $6.75.

A number of brokerages have recently commented on RWT. UBS Group raised their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a research note on Wednesday, September 3rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, October 8th. Jones Trading reduced their price objective on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research note on Thursday, October 30th. Finally, BTIG Research reiterated a “buy” rating and issued a $8.50 target price on shares of Redwood Trust in a research note on Friday, September 26th.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. CWM LLC lifted its holdings in Redwood Trust by 270.5% during the 2nd quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock worth $36,000 after buying an additional 4,503 shares during the last quarter. Quantbot Technologies LP acquired a new stake in shares of Redwood Trust during the 1st quarter valued at approximately $37,000. Russell Investments Group Ltd. raised its position in shares of Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 6,082 shares in the last quarter. AlphaQuest LLC lifted its stake in Redwood Trust by 165.5% during the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock worth $52,000 after purchasing an additional 5,354 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in Redwood Trust by 136.9% in the second quarter. Tower Research Capital LLC TRC now owns 10,823 shares of the real estate investment trust’s stock worth $64,000 after purchasing an additional 6,255 shares during the period. 74.34% of the stock is owned by institutional investors and hedge funds.

Redwood Trust Stock Down 0.9%

Shares of NYSE:RWT opened at $5.74 on Tuesday. The company has a debt-to-equity ratio of 22.73, a quick ratio of 57.77 and a current ratio of 57.77. Redwood Trust has a 1 year low of $4.68 and a 1 year high of $6.73. The stock has a market capitalization of $726.51 million, a P/E ratio of -7.08 and a beta of 1.59. The stock has a 50-day simple moving average of $5.45 and a 200-day simple moving average of $5.75.

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

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd will be given a $0.18 dividend. The ex-dividend date of this dividend is Tuesday, December 23rd. This represents a $0.72 annualized dividend and a yield of 12.6%. Redwood Trust’s dividend payout ratio (DPR) is -88.89%.

About Redwood Trust

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.