LSV Asset Management Raises Stake in Redwood Trust, Inc. (NYSE:RWT)

Key Points

• LSV Asset Management increased its stake in Redwood Trust, Inc. by 58.9% during the first quarter, owning 1,772,345 shares valued at approximately $10.76 million.
• Various hedge funds are actively buying shares of Redwood Trust, with institutional investors now holding 74.34% of the company's stock.
• Redwood Trust reported $0.18 earnings per share for the last quarter, missing estimates and also issued a $0.18 quarterly dividend, providing a yield of 12.6%.

LSV Asset Management increased its holdings in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 58.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,772,345 shares of the real estate investment trust's stock after purchasing an additional 657,141 shares during the quarter. LSV Asset Management owned approximately 1.33% of Redwood Trust worth $10,758,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Invesco Ltd. raised its stake in shares of Redwood Trust by 150.9% in the fourth quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust's stock valued at $13,031,000 after acquiring an additional 1,200,050 shares during the period. Balyasny Asset Management L.P. raised its position in Redwood Trust by 19.2% in the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust's stock worth $13,023,000 after purchasing an additional 321,612 shares during the period. Northern Trust Corp lifted its stake in Redwood Trust by 14.4% in the fourth quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust's stock worth $10,248,000 after purchasing an additional 197,719 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Redwood Trust by 10.9% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,726,253 shares of the real estate investment trust's stock valued at $11,272,000 after buying an additional 169,729 shares during the period. Finally, Mariner Investment Group LLC purchased a new position in shares of Redwood Trust during the first quarter valued at approximately $910,000. Institutional investors own 74.34% of the company's stock.

Analyst Ratings Changes

RWT has been the topic of several recent analyst reports. UBS Group reduced their price target on Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a report on Thursday, July 31st. Keefe, Bruyette & Woods reduced their target price on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a research note on Tuesday. JMP Securities lowered their target price on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research note on Thursday, July 31st. JPMorgan Chase & Co. raised their price target 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. Finally, Wall Street Zen lowered shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. One analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $7.18.

Redwood Trust Stock Up 0.8%

NYSE RWT traded up $0.05 during trading on Friday, hitting $5.77. The company's stock had a trading volume of 1,216,305 shares, compared to its average volume of 1,006,454. Redwood Trust, Inc. has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The company has a market cap of $767.44 million, a PE ratio of -9.01 and a beta of 1.31. The company has a debt-to-equity ratio of 18.74, a current ratio of 39.35 and a quick ratio of 39.35. The business's 50 day simple moving average is $5.82 and its 200-day simple moving average is $5.97.

Redwood Trust (NYSE:RWT - Get Free Report) last released its earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The company had revenue of ($38.10) million during the quarter, compared to analyst estimates of $31.00 million. Redwood Trust had a positive return on equity of 8.57% and a negative net margin of 9.26%. On average, equities analysts anticipate 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. Investors of record on Monday, June 23rd were given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 12.5%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's dividend 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.