Dynamic Technology Lab Private Ltd Makes New $298,000 Investment in Redwood Trust, Inc. $RWT

Key Points

• Dynamic Technology Lab Private Ltd has acquired 49,024 shares of Redwood Trust, Inc. valued at approximately $298,000, indicating growing institutional interest in the real estate investment trust.
• Redwood Trust announced a quarterly dividend of $0.18 per share, which reflects an annualized payout of $0.72 and a significant dividend yield of 11.5%.
• Analysts have varying ratings on Redwood Trust, with recent price targets set between $5.75 and $7.00, leading to a consensus rating of "Moderate Buy."

Dynamic Technology Lab Private Ltd acquired 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 fund acquired 49,024 shares of the real estate investment trust's stock, valued at approximately $298,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Quantbot Technologies LP bought a new stake in Redwood Trust during the 1st quarter worth approximately $37,000. AlphaQuest LLC raised 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 purchasing an additional 5,354 shares during the period. Carrera Capital Advisors purchased a new position in shares of Redwood Trust during the 1st quarter valued at $65,000. XTX Topco Ltd bought a new position in Redwood Trust in the 1st quarter worth $65,000. Finally, Pinnacle Associates Ltd. bought a new position in Redwood Trust in the 1st quarter worth $68,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Trading Up 0.8%

RWT stock traded up $0.05 during midday trading on Thursday, reaching $6.08. 785,852 shares of the company traded hands, 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 52-week low of $4.68 and a 52-week high of $8.15. The firm has a market capitalization of $785.68 million, a price-to-earnings ratio of -9.50 and a beta of 1.37. The business has a 50 day moving average of $5.99 and a 200-day moving average of $5.89.

Redwood Trust (NYSE:RWT - Get Free Report) last posted 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 positive return on equity of 8.70% and a negative net margin of 6.93%.The company had revenue of ($38.10) million during the quarter, compared to analysts' expectations of $31.00 million. As a group, sell-side analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced 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 dividend on an annualized basis and a yield of 11.8%. Redwood Trust's dividend payout ratio is presently -112.50%.

Analysts Set New Price Targets

Several equities analysts have recently commented on RWT shares. JMP Securities lowered their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 31st. Wall Street Zen downgraded Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. Keefe, Bruyette & Woods lowered their price target on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a report on Tuesday, August 5th. Finally, UBS Group upped their price target on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus 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.