Brevan Howard Capital Management LP Invests $331,000 in Redwood Trust, Inc. (NYSE:RWT)

Brevan Howard Capital Management LP bought a new stake in Redwood Trust, Inc. (NYSE:RWT - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 50,703 shares of the real estate investment trust's stock, valued at approximately $331,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Sovran Advisors LLC acquired a new position in Redwood Trust in the 4th quarter worth about $63,000. KBC Group NV increased its holdings in Redwood Trust by 86.7% in the 4th quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust's stock worth $67,000 after purchasing an additional 4,788 shares in the last quarter. Zacks Investment Management acquired a new position in Redwood Trust in the 4th quarter worth about $74,000. Cibc World Markets Corp acquired a new position in Redwood Trust in the 4th quarter worth about $80,000. Finally, Tower Research Capital LLC TRC increased its holdings in Redwood Trust by 239.3% in the 4th quarter. Tower Research Capital LLC TRC now owns 12,566 shares of the real estate investment trust's stock worth $82,000 after purchasing an additional 8,863 shares in the last quarter. Institutional investors own 74.34% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RWT. StockNews.com raised Redwood Trust from a "sell" rating to a "hold" rating in a report on Wednesday, March 5th. JMP Securities reduced their price target on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating on the stock in a research report on Thursday, April 17th. JPMorgan Chase & Co. upped their price target on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research report on Thursday, May 1st. UBS Group upped their price target on Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research report on Monday, May 5th. Finally, Jones Trading reissued a "buy" rating and set a $7.00 target price on shares of Redwood Trust in a research note on Friday, May 2nd. Five investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $7.44.

Redwood Trust Trading Down 0.4%

Shares of Redwood Trust stock traded down $0.03 on Friday, hitting $6.02. 162,433 shares of the company's stock traded hands, compared to its average volume of 941,121. Redwood Trust, Inc. has a one year low of $4.68 and a one year high of $8.15. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36. The company has a fifty day moving average of $5.85 and a two-hundred day moving average of $6.43. The company has a market capitalization of $799.89 million, a price-to-earnings ratio of 18.23 and a beta of 1.45.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.03). Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. The business had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. As a group, sell-side analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 24th were issued a $0.18 dividend. The ex-dividend date of this dividend was Monday, March 24th. This represents a $0.72 annualized dividend and a yield of 11.97%. Redwood Trust's payout ratio is currently 327.27%.

Redwood Trust Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.