Caxton Associates LLP Takes Position in Redwood Trust, Inc. $RWT

Key Points

• Caxton Associates LLP has acquired a new stake in Redwood Trust, purchasing 68,925 shares valued at approximately $418,000, which represents roughly 0.05% of the company.
• Wall Street analysts have mixed opinions on Redwood Trust, with target prices ranging from $5.75 to $7.00 and a consensus rating of "Moderate Buy."
• Redwood Trust declared a quarterly dividend of $0.18 per share, which equates to a significant annualized yield of 11.5%, despite a negative dividend payout ratio.

Caxton Associates LLP acquired a new stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 68,925 shares of the real estate investment trust's stock, valued at approximately $418,000. Caxton Associates LLP owned about 0.05% of Redwood Trust at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of RWT. Quantbot Technologies LP bought a new position in shares of Redwood Trust during the first quarter valued at about $37,000. AlphaQuest LLC boosted its holdings in shares of Redwood Trust by 165.5% during the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock worth $52,000 after purchasing an additional 5,354 shares during the period. Carrera Capital Advisors purchased a new stake in shares of Redwood Trust during the first quarter worth about $65,000. XTX Topco Ltd purchased a new stake in shares of Redwood Trust during the first quarter worth about $65,000. Finally, Pinnacle Associates Ltd. purchased a new stake in shares of Redwood Trust during the first quarter worth about $68,000. 74.34% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on RWT. UBS Group increased their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. Keefe, Bruyette & Woods dropped their target price on shares of Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a report on Tuesday, August 5th. JMP Securities dropped their target price on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a report on Thursday, July 31st. Finally, Wall Street Zen lowered shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Redwood Trust currently has a consensus rating of "Moderate Buy" and a consensus target price of $7.25.

Redwood Trust Price Performance

RWT stock opened at $6.24 on Friday. The firm has a 50 day moving average price of $5.99 and a 200-day moving average price of $5.90. Redwood Trust, Inc. has a 52-week low of $4.68 and a 52-week high of $8.15. The firm has a market capitalization of $806.35 million, a price-to-earnings ratio of -9.75 and a beta of 1.37. The company has a debt-to-equity ratio of 20.00, a quick ratio of 40.39 and a current ratio of 40.39.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.01). The firm had revenue of ($38.10) million for the quarter, compared to the consensus estimate of $31.00 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. Equities research analysts forecast that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Tuesday, September 23rd will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Tuesday, September 23rd. This represents a $0.72 annualized dividend and a dividend yield of 11.5%. Redwood Trust's dividend payout ratio (DPR) is -112.50%.

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.

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