BTIG Research Reiterates "Buy" Rating for Redwood Trust (NYSE:RWT)

Key Points

• BTIG Research reiterated a “Buy” rating on Redwood Trust and maintained a $6.00 price target, implying approximately 33.8% upside from the stock’s prior close.
• Analyst sentiment is mixed: six analysts rate the stock a Buy, two a Hold, and two a Sell, producing a consensus “Hold” rating and an average target price of $6.11.
• Redwood Trust shares fell $0.46 to $4.49, near the lower end of their 12-month range of $4.19 to $6.97. Institutional investors own 74.34% of the company, with several major funds increasing their positions.

Redwood Trust (NYSE:RWT - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at BTIG Research in a research report issued on Tuesday,Benzinga reports. They currently have a $6.00 price target on the real estate investment trust's stock. BTIG Research's price target points to a potential upside of 33.78% from the company's previous close.

A number of other research analysts have also issued reports on the stock. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Citizens Jmp lowered their price target on Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating for the company in a report on Wednesday, July 8th. JPMorgan Chase & Co. reduced their target price on shares of Redwood Trust from $6.50 to $6.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. JonesTrading restated a "buy" rating and issued a $6.25 price target on shares of Redwood Trust in a research note on Thursday, April 30th. Finally, Keefe, Bruyette & Woods raised shares of Redwood Trust from a "market perform" rating to an "outperform" rating and lowered their price objective for the company from $7.00 to $6.00 in a research report on Thursday, July 9th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $6.11.

Redwood Trust Price Performance

Shares of RWT traded down $0.46 on Tuesday, reaching $4.49. The stock had a trading volume of 2,452,198 shares, compared to its average volume of 1,913,005. The firm has a market capitalization of $561.61 million, a PE ratio of -5.73 and a beta of 1.37. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 28.42. Redwood Trust has a twelve month low of $4.19 and a twelve month high of $6.97. The firm has a 50-day moving average of $5.07 and a 200 day moving average of $5.52.

Institutional Investors Weigh In On Redwood Trust

Several hedge funds have recently bought and sold shares of the business. UBS Group AG lifted its position in Redwood Trust by 521.1% in the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust's stock worth $21,430,000 after buying an additional 3,251,302 shares in the last quarter. Wellington Management Group LLP raised its position in shares of Redwood Trust by 10.2% in the third quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust's stock valued at $86,969,000 after purchasing an additional 1,395,675 shares during the period. Evergreen Capital Management LLC raised its holdings in Redwood Trust by 52.8% in the 4th quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust's stock worth $9,257,000 after acquiring an additional 578,301 shares during the period. Tran Capital Management L.P. bought a new position in shares of Redwood Trust in the fourth quarter worth about $2,947,000. Finally, Invesco Ltd. lifted its holdings in shares of Redwood Trust by 25.4% during the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust's stock worth $14,107,000 after buying an additional 516,630 shares during the last quarter. 74.34% of the stock is owned by hedge funds and other 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.

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