Redwood Trust, Inc. (NYSE:RWT) Stock Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts maintain a consensus “Hold” rating on Redwood Trust, with six buys, four holds and one sell among 11 analysts. The average 12-month price target is $5.84, though several firms recently reduced their targets to around $6.00–$6.50.
• Redwood Trust reported quarterly EPS of $0.25, exceeding the $0.23 consensus estimate, but revenue of $56.01 million fell short of the $89.45 million forecast. The company declared a $0.18 quarterly dividend, equivalent to a 19.5% annualized yield.
• Company insiders bought 244,171 shares worth approximately $948,402 over the past three months, while hedge funds and other institutions own 74.34% of the stock.

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have earned a consensus recommendation of "Hold" from the eleven analysts that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and six have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $5.84.

Several research analysts have recently commented on RWT shares. Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a report on Monday. BTIG Research reiterated a "buy" rating and set a $6.00 target price on shares of Redwood Trust in a research report on Tuesday, July 28th. JonesTrading cut their price target on shares of Redwood Trust from $6.25 to $6.00 and set a "buy" rating for the company in a research note on Tuesday, July 28th. Citizens Jmp decreased their price target on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a report on Wednesday, July 8th. Finally, UBS Group decreased their price target on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a report on Friday, August 21st.

Redwood Trust Price Performance

NYSE:RWT opened at $3.69 on Friday. The firm has a market capitalization of $462.87 million, a price-to-earnings ratio of -92.10 and a beta of 1.37. Redwood Trust has a 52-week low of $3.22 and a 52-week high of $6.97. The stock has a fifty day moving average of $4.51 and a 200 day moving average of $5.08. 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 announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The business had revenue of $56.01 million for the quarter, compared to analyst estimates of $89.45 million. On average, research analysts expect that Redwood Trust will post 1.03 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd will be given a $0.18 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 19.5%. Redwood Trust's payout ratio is -1,800.00%.

Insider Transactions at Redwood Trust

In other news, CEO Christopher J. Abate purchased 100,000 shares of the company's stock in a transaction on Tuesday, September 15th. The stock was purchased at an average price of $3.84 per share, with a total value of $384,000.00. Following the completion of the purchase, the chief executive officer directly owned 679,283 shares in the company, valued at approximately $2,608,446.72. This trade represents a 17.26% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, President Dashiell I. Robinson acquired 63,211 shares of the business's stock in a transaction dated Wednesday, September 16th. The stock was purchased at an average price of $3.98 per share, with a total value of $251,579.78. Following the completion of the acquisition, the president directly owned 395,050 shares in the company, valued at approximately $1,572,299. This represents a 19.05% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 244,171 shares of company stock worth $948,402 in the last three months. Insiders own 3.30% of the company's stock.

Hedge Funds Weigh In On Redwood Trust

Large investors have recently modified their holdings of the company. Bank of America Corp DE bought a new position in shares of Redwood Trust in the second quarter worth approximately $2,032,000. Legal & General Group Plc bought a new stake in Redwood Trust during the 2nd quarter valued at $1,349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Redwood Trust by 7,932.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust's stock valued at $1,256,000 after buying an additional 261,759 shares during the last quarter. State Street Corp boosted its position in Redwood Trust by 5.1% during the 2nd quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust's stock valued at $24,727,000 after buying an additional 254,399 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Redwood Trust during the 2nd quarter valued at $990,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.

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