JPMorgan Chase & Co. Upgrades Redwood Trust (NYSE:RWT) to Overweight

Redwood Trust (NYSE:RWT) was upgraded by equities research analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a note issued to investors on Friday, MarketBeat Ratings reports. The brokerage presently has a $6.00 price target on the real estate investment trust’s stock. JPMorgan Chase & Co.‘s price target points to a potential upside of 3.18% from the stock’s previous close.

RWT has been the subject of a number of other reports. Wall Street Zen downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday, January 17th. Jones Trading reduced their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a report on Thursday, October 30th. BTIG Research reiterated a “buy” rating and set a $8.50 price target on shares of Redwood Trust in a research note on Friday, September 26th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, October 8th. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Redwood Trust has a consensus rating of “Moderate Buy” and an average price target of $6.75.

Redwood Trust Price Performance

Shares of RWT opened at $5.82 on Friday. The firm has a fifty day simple moving average of $5.55 and a two-hundred day simple moving average of $5.72. The firm has a market cap of $736.64 million, a PE ratio of -7.18 and a beta of 1.58. The company has a current ratio of 57.77, a quick ratio of 57.77 and a debt-to-equity ratio of 22.73. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $6.73.

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Concurrent Investment Advisors LLC boosted its stake in Redwood Trust by 4.7% in the second quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust’s stock valued at $245,000 after acquiring an additional 1,866 shares in the last quarter. Intech Investment Management LLC increased its position in shares of Redwood Trust by 1.4% during the second quarter. Intech Investment Management LLC now owns 151,270 shares of the real estate investment trust’s stock worth $894,000 after purchasing an additional 2,033 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Redwood Trust by 7.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 34,177 shares of the real estate investment trust’s stock valued at $202,000 after purchasing an additional 2,464 shares during the last quarter. Inceptionr LLC boosted its position in shares of Redwood Trust by 10.7% in the 3rd quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust’s stock worth $153,000 after purchasing an additional 2,560 shares in the last quarter. Finally, Rhumbline Advisers boosted its position in shares of Redwood Trust by 0.8% in the 3rd quarter. Rhumbline Advisers now owns 392,058 shares of the real estate investment trust’s stock worth $2,270,000 after purchasing an additional 3,147 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

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.