Redwood Trust (NYSE:RWT) Rating Lowered to Sell at Wall Street Zen

Redwood Trust (NYSE:RWT) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

RWT has been the subject of several other research reports. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. Piper Sandler cut their price objective on Redwood Trust from $6.50 to $6.00 and set a “neutral” rating on the stock in a research note on Thursday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. Keefe, Bruyette & Woods increased their price target on Redwood Trust from $5.75 to $7.00 and gave the company a “market perform” rating in a report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a research report on Friday, January 23rd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $6.82.

Redwood Trust Stock Down 0.3%

RWT stock opened at $5.65 on Monday. The firm has a market cap of $705.63 million, a PE ratio of -9.25 and a beta of 1.52. Redwood Trust has a 1 year low of $4.68 and a 1 year high of $6.97. The company has a fifty day simple moving average of $5.84 and a 200 day simple moving average of $5.66. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 24.34.

Redwood Trust (NYSE:RWT) last posted its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%.The business had revenue of $140.33 million for the quarter, compared to analyst estimates of $24.88 million. Sell-side analysts anticipate that Redwood Trust will post 0.78 EPS for the current fiscal year.

Institutional Trading of Redwood Trust

Several hedge funds have recently added to or reduced their stakes in RWT. Clearstead Advisors LLC lifted its holdings in shares of Redwood Trust by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after buying an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Redwood Trust by 331.8% in the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after acquiring an additional 6,082 shares during the last quarter. CWM LLC increased its position in Redwood Trust by 54.2% during the third quarter. CWM LLC now owns 9,514 shares of the real estate investment trust’s stock worth $55,000 after acquiring an additional 3,346 shares during the period. Westbourne Investments Inc. bought a new position in Redwood Trust during the fourth quarter worth $55,000. Finally, Bank of Marin bought a new position in Redwood Trust during the fourth quarter worth $58,000. Institutional investors own 74.34% of the company’s stock.

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.