Nuveen LLC Acquires Shares of 326,700 Redwood Trust, Inc. $RWT

Key Points

• Nuveen LLC invested approximately $1.98 million in Redwood Trust by acquiring 326,700 shares, representing about 0.25% of the company.
• Redwood Trust reported a quarterly EPS of $0.18, missing analysts' expectations, and a negative net margin of 6.93% for the same period.
• The company declared a quarterly dividend of $0.18 per share, with a dividend yield of 11.8%, despite a dividend payout ratio of -112.50%.

Nuveen LLC acquired a new stake in Redwood Trust, Inc. (NYSE:RWT - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 326,700 shares of the real estate investment trust's stock, valued at approximately $1,983,000. Nuveen LLC owned 0.25% of Redwood Trust at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the business. Cambridge Investment Research Advisors Inc. grew its holdings in Redwood Trust by 3.1% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust's stock worth $360,000 after acquiring an additional 1,767 shares during the last quarter. New York State Teachers Retirement System lifted its holdings in shares of Redwood Trust by 1.5% during the first quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock worth $925,000 after purchasing an additional 2,326 shares during the period. Focus Partners Wealth grew its stake in shares of Redwood Trust by 14.1% in the fourth quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust's stock worth $132,000 after purchasing an additional 2,488 shares during the last quarter. Apollon Wealth Management LLC increased its holdings in Redwood Trust by 3.9% in the first quarter. Apollon Wealth Management LLC now owns 81,897 shares of the real estate investment trust's stock valued at $497,000 after purchasing an additional 3,049 shares during the period. Finally, MetLife Investment Management LLC increased its holdings in Redwood Trust by 8.6% in the fourth quarter. MetLife Investment Management LLC now owns 75,463 shares of the real estate investment trust's stock valued at $493,000 after purchasing an additional 5,951 shares during the period. Institutional investors own 74.34% of the company's stock.

Redwood Trust Stock Up 2.2%

Shares of Redwood Trust stock traded up $0.14 during trading on Thursday, reaching $6.28. 725,653 shares of the company traded hands, compared to its average volume of 1,000,785. The firm has a market capitalization of $810.86 million, a PE ratio of -9.80 and a beta of 1.37. Redwood Trust, Inc. has a 1-year low of $4.68 and a 1-year high of $8.15. The company has a 50 day moving average price of $5.96 and a 200-day moving average price of $5.91. 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 posted 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 company had revenue of ($38.10) million during 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%. As a group, equities research analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were issued a $0.18 dividend. The ex-dividend date was Monday, June 23rd. This represents a $0.72 annualized dividend and a yield of 11.5%. Redwood Trust's dividend payout ratio is presently -112.50%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on RWT shares. Keefe, Bruyette & Woods reduced their price target on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a research report on Tuesday, August 5th. JMP Securities reduced their target price 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 downgraded shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. Finally, UBS Group boosted their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company 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.