Redwood Trust, Inc. $RWT Shares Acquired by Ceredex Value Advisors LLC

Key Points

• Ceredex Value Advisors LLC increased its stake in Redwood Trust, Inc. by 24.4%, acquiring an additional 289,900 shares, bringing its total ownership to 1,479,950 shares worth approximately $8.98 million.
• Redwood Trust reported earnings of $0.18 per share, which was below analysts' expectations of $0.19, and it experienced a negative net margin of 6.93% for the quarter.
• The company announced a quarterly dividend of $0.18 per share, translating to an annual yield of 11.9%, with a dividend payout ratio of -112.50%.

Ceredex Value Advisors LLC increased its position in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 24.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,479,950 shares of the real estate investment trust's stock after acquiring an additional 289,900 shares during the period. Ceredex Value Advisors LLC owned about 1.11% of Redwood Trust worth $8,983,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Quantbot Technologies LP acquired a new stake in shares of Redwood Trust during the first quarter worth about $37,000. AlphaQuest LLC increased its stake in Redwood Trust by 165.5% during the 1st quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock worth $52,000 after buying an additional 5,354 shares during the period. Carrera Capital Advisors acquired a new stake in Redwood Trust during the 1st quarter worth approximately $65,000. XTX Topco Ltd acquired a new stake in Redwood Trust during the 1st quarter worth approximately $65,000. Finally, Pinnacle Associates Ltd. purchased a new position in Redwood Trust in the 1st quarter valued at approximately $68,000. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have recently weighed in on RWT shares. UBS Group cut their price objective on Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a research report on Thursday, July 31st. JMP Securities cut their price target on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a report on Thursday, July 31st. Wall Street Zen cut Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. Finally, Keefe, Bruyette & Woods lowered their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $7.18.

Redwood Trust Stock Up 1.6%

Shares of NYSE RWT traded up $0.10 during midday trading on Monday, hitting $6.12. 818,815 shares of the company's stock were exchanged, compared to its average volume of 1,079,473. The firm's fifty day simple moving average is $5.93 and its 200-day simple moving average is $5.91. The company has a market cap of $790.18 million, a PE ratio of -9.55 and a beta of 1.37. Redwood Trust, Inc. has a twelve month low of $4.68 and a twelve month high of $8.15. The company has a debt-to-equity ratio of 20.00, a current ratio of 40.39 and a quick 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 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. The company had revenue of ($38.10) million during the quarter, compared to analysts' expectations of $31.00 million. Research analysts predict that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 23rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 11.8%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's payout ratio is presently -112.50%.

About Redwood Trust

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.