Redwood Trust, Inc. (NYSE:RWT) Given Average Rating of "Hold" by Brokerages

Key Points

• Redwood Trust has a consensus “Hold” rating from 11 analysts, with six buys, three holds and two sells. The average 12-month price target is $5.94, above the stock’s recent $4.61 opening price.
• The REIT reported quarterly EPS of $0.25, beating the $0.23 consensus estimate, although revenue of $56.01 million fell well short of the $89.45 million forecast.
• Redwood Trust paid a quarterly dividend of $0.18 per share, equating to a 15.6% annualized yield, while institutional investors and hedge funds own 74.34% of the company.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) has received a consensus recommendation of "Hold" from the eleven analysts that are presently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and six have assigned a buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $5.9375.

Several equities research analysts have recently commented on the company. JPMorgan Chase & Co. reduced their target price on Redwood Trust from $6.50 to $6.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Wells Fargo & Company reduced their price objective on shares of Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 29th. Citizens Jmp decreased their target price on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating for the company in a report on Wednesday, July 8th. Finally, BTIG Research reissued a "buy" rating and issued a $6.00 target price on shares of Redwood Trust in a research report on Tuesday, July 28th.

Redwood Trust Price Performance

NYSE RWT opened at $4.61 on Monday. The stock has a market capitalization of $579.06 million, a P/E ratio of -115.22 and a beta of 1.38. Redwood Trust has a 1 year low of $4.19 and a 1 year high of $6.97. The business's fifty day moving average is $4.79 and its two-hundred day moving average is $5.35. The company has a debt-to-equity ratio of 31.69, a quick ratio of 67.49 and a current ratio of 67.49.

Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.02. The business had revenue of $56.01 million during the quarter, compared to analyst estimates of $89.45 million. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%. On average, research analysts forecast that Redwood Trust will post 1.03 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 15.6%. The ex-dividend date was Tuesday, June 23rd. Redwood Trust's dividend payout ratio (DPR) is currently -1,800.00%.

Hedge Funds Weigh In On Redwood Trust

Large investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Redwood Trust by 26.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust's stock valued at $2,990,000 after buying an additional 103,893 shares during the last quarter. Jane Street Group LLC acquired a new stake in Redwood Trust during the 1st quarter worth $2,018,000. Strs Ohio acquired a new stake in Redwood Trust in the 1st quarter valued at $149,000. XTX Topco Ltd raised its holdings in Redwood Trust by 35.4% during the second quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust's stock worth $86,000 after acquiring an additional 3,795 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in Redwood Trust by 331.8% during 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 in the last quarter. 74.34% of the stock is currently owned by institutional investors and hedge funds.

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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