Bank of New York Mellon Corp Grows Position in Redwood Trust, Inc. (NYSE:RWT)

Bank of New York Mellon Corp increased its stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 7.3% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 1,076,392 shares of the real estate investment trust's stock after acquiring an additional 72,765 shares during the quarter. Bank of New York Mellon Corp owned about 0.81% of Redwood Trust worth $6,534,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Zacks Investment Management purchased a new position in shares of Redwood Trust in the 4th quarter worth $74,000. Cibc World Markets Corp purchased a new position in shares of Redwood Trust in the 4th quarter worth $80,000. Tower Research Capital LLC TRC grew its stake in shares of Redwood Trust by 239.3% in the 4th quarter. Tower Research Capital LLC TRC now owns 12,566 shares of the real estate investment trust's stock worth $82,000 after buying an additional 8,863 shares in the last quarter. Cetera Investment Advisers purchased a new position in shares of Redwood Trust in the 4th quarter worth $95,000. Finally, Westbourne Investments Inc. purchased a new position in shares of Redwood Trust in the 4th quarter worth $111,000. Institutional investors own 74.34% of the company's stock.

Analysts Set New Price Targets

RWT has been the subject of a number of recent research reports. JPMorgan Chase & Co. lifted their price objective on shares of Redwood Trust from $5.50 to $6.00 and gave the stock a "neutral" rating in a research note on Thursday, May 1st. JMP Securities lowered their target price on shares of Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating for the company in a report on Thursday, April 17th. Jones Trading restated a "buy" rating and issued a $7.00 target price on shares of Redwood Trust in a report on Friday, May 2nd. UBS Group raised 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 Monday, May 5th. Finally, Wall Street Zen upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Six research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $7.39.

Redwood Trust Trading Down 0.2%

RWT traded down $0.02 on Friday, reaching $6.04. 685,505 shares of the company traded hands, compared to its average volume of 888,865. Redwood Trust, Inc. has a one year low of $4.68 and a one year high of $8.15. The firm has a fifty day simple moving average of $5.79 and a two-hundred day simple moving average of $6.01. The company has a market cap of $803.38 million, a P/E ratio of 27.43 and a beta of 1.30. The company has a quick ratio of 39.35, a current ratio of 39.35 and a debt-to-equity ratio of 16.32.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings data on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.03). The firm had revenue of $73.80 million during the quarter, compared to analysts' expectations of $26.55 million. Redwood Trust had a return on equity of 7.82% and a net margin of 3.93%. As a group, equities research analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 11.93%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's dividend payout ratio is presently 327.27%.

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.