Redwood Trust, Inc. $RWT Shares Purchased by Evergreen Capital Management LLC

Key Points

• Evergreen Capital Management LLC boosted its stake in Redwood Trust by 52.8%, purchasing 578,301 shares to hold 1,674,009 shares (about 1.32% of the company) valued at roughly $9.26 million at quarter-end.
• Analysts are mixed: the stock has an average rating of "Hold" with an average price target of $6.82, while recent research notes range from downgrades to reiterated buy ratings (5 Buy, 4 Hold, 1 Sell).
• RWT traded near $5.94 (12‑month range $5.00–$6.97) with a market cap of about $742M, and it recently paid a quarterly dividend of $0.18 (annualized yield ~12.1%), despite a negative payout ratio.

Evergreen Capital Management LLC raised its position in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 52.8% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,674,009 shares of the real estate investment trust's stock after purchasing an additional 578,301 shares during the period. Evergreen Capital Management LLC owned 1.32% of Redwood Trust worth $9,257,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of RWT. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Redwood Trust by 26.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust's stock valued at $2,990,000 after purchasing an additional 103,893 shares during the period. Jane Street Group LLC acquired a new position in Redwood Trust during the 1st quarter valued at about $2,018,000. Strs Ohio acquired a new position in Redwood Trust during the 1st quarter valued at about $149,000. XTX Topco Ltd boosted its stake in Redwood Trust by 35.4% during the 2nd quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust's stock valued at $86,000 after purchasing an additional 3,795 shares during the period. Finally, Russell Investments Group Ltd. boosted its stake in Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust's stock valued at $47,000 after purchasing an additional 6,082 shares during the period. 74.34% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Wall Street Zen lowered shares of Redwood Trust from a "hold" rating to a "sell" rating in a research note on Monday, April 6th. Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a research note on Thursday, January 22nd. Piper Sandler reduced their target price on shares of Redwood Trust from $6.50 to $6.00 and set a "neutral" rating for the company in a research note on Thursday, April 2nd. JonesTrading reaffirmed a "buy" rating and issued a $6.25 price target on shares of Redwood Trust in a research note on Tuesday, March 3rd. Finally, Keefe, Bruyette & Woods upped their price target on shares of Redwood Trust from $5.75 to $7.00 and gave the stock a "market perform" rating in a research note on Wednesday, February 18th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Redwood Trust presently has an average rating of "Hold" and an average price target of $6.82.

Redwood Trust Stock Down 1.1%

RWT stock opened at $5.94 on Tuesday. Redwood Trust, Inc. has a 12 month low of $5.00 and a 12 month high of $6.97. The firm has a market cap of $741.88 million, a PE ratio of -9.73 and a beta of 1.52. The firm has a 50 day simple moving average of $5.90 and a 200 day simple moving average of $5.67. The company has a debt-to-equity ratio of 24.34, a current ratio of 55.15 and a quick ratio of 55.15.

Redwood Trust (NYSE:RWT - Get Free Report) last released its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. The business had revenue of $140.33 million for the quarter, compared to analyst estimates of $24.88 million. Equities research analysts forecast that Redwood Trust, Inc. will post 1.28 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 24th were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Tuesday, March 24th. This represents a $0.72 annualized dividend and a yield of 12.1%. Redwood Trust's dividend payout ratio is currently -118.03%.

About Redwood Trust

Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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