Caxton Associates LLP Makes New $418,000 Investment 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 bought a new stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 68,925 shares of the real estate investment trust's stock, valued at approximately $418,000. Caxton Associates LLP owned 0.05% of Redwood Trust as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently modified their holdings of the company. Quantbot Technologies LP bought a new stake in shares of Redwood Trust during the 1st quarter valued at $37,000. AlphaQuest LLC lifted its position in shares of Redwood Trust by 165.5% during the 1st quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock valued at $52,000 after acquiring an additional 5,354 shares during the period. Carrera Capital Advisors bought a new stake in shares of Redwood Trust during the 1st quarter valued at $65,000. XTX Topco Ltd bought a new stake in shares of Redwood Trust during the 1st quarter valued at $65,000. Finally, Pinnacle Associates Ltd. bought a new stake in shares of Redwood Trust during the 1st quarter valued at $68,000. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Price Performance

Shares of Redwood Trust stock traded up $0.05 during trading on Thursday, reaching $6.08. 785,852 shares of the company's stock were exchanged, compared to its average volume of 812,192. 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, Inc. has a 1-year low of $4.68 and a 1-year high of $8.15. The company has a market cap of $785.68 million, a P/E ratio of -9.50 and a beta of 1.37. The firm's 50-day moving average price is $5.99 and its 200 day moving average price is $5.89.

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

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 11.8%. The ex-dividend date of this dividend is Tuesday, September 23rd. Redwood Trust's dividend payout ratio is presently -112.50%.

Wall Street Analysts Forecast Growth

RWT has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods cut their target price on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research report on Tuesday, August 5th. JMP Securities cut their target price on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research report on Thursday, July 31st. UBS Group boosted their price target on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. Finally, Wall Street Zen cut Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $7.25.

Redwood Trust Company 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.