Redwood Trust, Inc. $RWT Shares Newly Bought by Bank of America Corp DE

Key Points

• Bank of America initiated a position in Redwood Trust during the second quarter, buying 428,590 shares valued at approximately $2.03 million. Institutional investors now own 74.34% of the company.
• Redwood Trust insiders bought 244,171 shares worth about $948,000 over the past 90 days, including significant purchases by a director and the president.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $5.84, while the stock recently traded at $3.88. The company also maintains a $0.18 quarterly dividend, equivalent to an annualized yield of about 18.6%.

Bank of America Corp DE purchased a new stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 428,590 shares of the real estate investment trust's stock, valued at approximately $2,032,000. Bank of America Corp DE owned about 0.34% of Redwood Trust at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Jupiter Topco LLC acquired a new stake in shares of Redwood Trust in the 2nd quarter valued at $235,000. Legal & General Group Plc acquired a new position in Redwood Trust during the second quarter worth $1,349,000. The Manufacturers Life Insurance Company bought a new position in Redwood Trust during the second quarter valued at about $161,000. Quantbot Technologies LP bought a new position in Redwood Trust during the second quarter valued at about $497,000. Finally, Virtus Advisers LLC acquired a new stake in shares of Redwood Trust in the second quarter worth about $161,000. Institutional investors own 74.34% of the company's stock.

Insider Activity at Redwood Trust

In related news, Director Greg Kubicek bought 50,000 shares of Redwood Trust stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average price of $3.85 per share, for a total transaction of $192,500.00. Following the completion of the purchase, the director owned 127,185 shares in the company, valued at approximately $489,662.25. This represents a 64.78% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, President Dashiell Robinson bought 63,211 shares of Redwood Trust stock in a transaction that occurred on Wednesday, September 16th. The stock was bought at an average price of $3.98 per share, with a total value of $251,579.78. Following the purchase, the president owned 395,050 shares of the company's stock, valued at $1,572,299. This trade represents a 19.05% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 244,171 shares of company stock worth $948,402 over the last ninety days. Corporate insiders own 3.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RWT. JonesTrading cut their price objective on Redwood Trust from $6.25 to $6.00 and set a "buy" rating on the stock in a research note on Tuesday, July 28th. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a report on Monday, September 21st. Citizens Jmp dropped their price target on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a research report on Wednesday, July 8th. Piper Sandler dropped their price target on shares of Redwood Trust from $6.50 to $5.50 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Finally, Zacks Research upgraded shares of Redwood Trust from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 15th. Six investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $5.84.

Redwood Trust Stock Up 0.6%

Shares of RWT stock opened at $3.88 on Thursday. Redwood Trust, Inc. has a 12 month low of $3.22 and a 12 month high of $6.97. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The firm has a market cap of $486.74 million, a PE ratio of -96.85 and a beta of 1.37. The stock has a 50 day moving average of $4.41 and a 200-day moving average of $5.02.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The business had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. On average, equities analysts predict that Redwood Trust, Inc. will post 1.03 EPS for the current year.

Redwood Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd were given a dividend of $0.18 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.6%. Redwood Trust's dividend payout ratio is currently -1,800.00%.

Redwood Trust Profile

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.

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