Public Sector Pension Investment Board Buys 90,702 Shares of Redwood Trust, Inc. $RWT

Key Points

• The Public Sector Pension Investment Board increased its stake in Redwood Trust by 27.5% in Q1, now holding 420,255 shares valued at approximately $2.55 million.
• Redwood Trust reported earnings of $0.18 per share for the last quarter, falling short of expectations, with a negative net margin of 6.93%.
• The company recently declared a quarterly dividend of $0.18 per share, representing an annualized yield of 12.1%, despite a dividend payout ratio of -112.50%.

Public Sector Pension Investment Board raised its stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 27.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 420,255 shares of the real estate investment trust's stock after purchasing an additional 90,702 shares during the period. Public Sector Pension Investment Board owned 0.32% of Redwood Trust worth $2,551,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cambridge Investment Research Advisors Inc. grew its holdings in Redwood Trust by 3.1% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust's stock valued at $360,000 after purchasing an additional 1,767 shares during the last quarter. Northern Trust Corp boosted its position in shares of 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 valued at $10,248,000 after acquiring an additional 197,719 shares during the period. New York State Teachers Retirement System boosted its position in shares of Redwood Trust by 1.5% in the first quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock valued at $925,000 after acquiring an additional 2,326 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Redwood Trust by 33.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 388,768 shares of the real estate investment trust's stock valued at $2,539,000 after acquiring an additional 97,205 shares during the period. Finally, Principal Financial Group Inc. boosted its position in shares of Redwood Trust by 2.9% in the first quarter. Principal Financial Group Inc. now owns 659,909 shares of the real estate investment trust's stock valued at $4,006,000 after acquiring an additional 18,499 shares during the period. Institutional investors and hedge funds own 74.34% of the company's stock.

Analyst Upgrades and Downgrades

RWT has been the subject of several research reports. Keefe, Bruyette & Woods reduced their price objective on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research report on Tuesday, August 5th. UBS Group reduced their price objective on Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a research report on Thursday, July 31st. Jones Trading reissued a "buy" rating and issued a $7.00 price objective on shares of Redwood Trust in a research report on Friday, May 2nd. JPMorgan Chase & Co. increased their price objective on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research report on Thursday, May 1st. Finally, JMP Securities reduced their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research report on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Redwood Trust presently has an average rating of "Moderate Buy" and an average target price of $7.18.

Redwood Trust Stock Performance

RWT stock traded down $0.11 during midday trading on Monday, hitting $6.00. The stock had a trading volume of 820,300 shares, compared to its average volume of 1,361,784. The firm has a market capitalization of $775.32 million, a price-to-earnings ratio of -9.38 and a beta of 1.31. Redwood Trust, Inc. has a 52 week low of $4.68 and a 52 week high of $8.15. The stock has a 50-day simple moving average of $5.89 and a 200 day simple moving average of $5.92. The company has a current ratio of 40.39, a quick ratio of 40.39 and a debt-to-equity ratio of 20.00.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The company had revenue of ($38.10) million for 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 anticipate that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were issued a dividend of $0.18 per share. The ex-dividend date of this dividend was Monday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.0%. Redwood Trust's dividend payout ratio (DPR) is presently -112.50%.

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.