Redwood Trust (NYSE:RWT) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

Redwood Trust (NYSE:RWT) had its price target raised by equities research analysts at Keefe, Bruyette & Woods from $5.75 to $7.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has a “market perform” rating on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ price objective would indicate a potential upside of 11.73% from the company’s previous close.

Other analysts have also issued reports about the stock. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target for the company in a research report on Friday, January 23rd. JonesTrading dropped their target price on Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a report on Thursday, October 30th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Redwood Trust currently has an average rating of “Moderate Buy” and a consensus price target of $6.96.

Redwood Trust Stock Down 2.7%

RWT stock opened at $6.27 on Wednesday. The stock has a 50-day simple moving average of $5.74 and a two-hundred day simple moving average of $5.72. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $6.97. The firm has a market capitalization of $793.65 million, a PE ratio of -10.27 and a beta of 1.59. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.68.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.11. The firm had revenue of $87.30 million for the quarter, compared to analysts’ expectations of $24.88 million. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.80%. On average, equities analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RWT. Clearstead Advisors LLC boosted its holdings in Redwood Trust by 192.5% in the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after purchasing an additional 3,572 shares during the last quarter. CWM LLC lifted its holdings in shares of Redwood Trust by 270.5% during the 2nd quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 4,503 shares during the period. Russell Investments Group Ltd. boosted its stake in shares of Redwood Trust by 331.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after buying an additional 6,082 shares during the last quarter. Westbourne Investments Inc. purchased a new position in shares of Redwood Trust in the 4th quarter worth $55,000. Finally, Bank of Marin purchased a new position in shares of Redwood Trust in the 4th quarter worth $58,000. 74.34% of the stock is owned by institutional investors.

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.