Redwood Trust, Inc. (NYSE:RWT) Plans Quarterly Dividend of $0.18

Key Points

• Redwood Trust declared a quarterly dividend of $0.18 per share, payable September 30 to shareholders of record on September 23. The annualized dividend is $0.72 per share, implying an approximately 20% yield.
• The dividend currently has an 86.7% earnings payout ratio, though analysts expect that to improve to about 63.2% next year based on projected earnings of $1.14 per share.
• Shares fell 15.5% to $3.60, while analysts maintained a consensus “Hold” rating and an average price target of $5.94. The company’s latest quarterly earnings of $0.25 per share exceeded estimates of $0.23.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) announced a quarterly dividend on Thursday, September 10th. Investors of record on Wednesday, September 23rd will be given a dividend of 0.18 per share by the real estate investment trust on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 20.0%. The ex-dividend date is Wednesday, September 23rd.

Redwood Trust has decreased its dividend by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Redwood Trust has a dividend payout ratio of 86.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Redwood Trust to earn $1.14 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 63.2%.

Redwood Trust Stock Down 15.5%

RWT stock traded down $0.66 during mid-day trading on Thursday, hitting $3.60. 42,842,443 shares of the company were exchanged, compared to its average volume of 2,112,238. 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 has a 1-year low of $3.22 and a 1-year high of $6.97. The firm's 50 day simple moving average is $4.74 and its 200 day simple moving average is $5.25. The firm has a market cap of $452.20 million, a P/E ratio of -89.98 and a beta of 1.37.

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

Analyst Upgrades and Downgrades

RWT has been the subject of a number of research analyst reports. JPMorgan Chase & Co. reduced their target price on shares of Redwood Trust from $6.50 to $6.00 and set an "overweight" rating for the company in a research note 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 Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 29th. Citizens Jmp decreased their price objective 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. Finally, UBS Group decreased their price objective on Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a report on Friday, August 21st. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Redwood Trust presently has a consensus rating of "Hold" and a consensus price target of $5.94.

Redwood Trust Company Profile

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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