Public Sector Pension Investment Board Acquires 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 grew its stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 27.5% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 420,255 shares of the real estate investment trust's stock after buying an additional 90,702 shares during the quarter. Public Sector Pension Investment Board owned approximately 0.32% of Redwood Trust worth $2,551,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. lifted its holdings in Redwood Trust by 3.1% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust's stock worth $360,000 after buying an additional 1,767 shares during the period. Northern Trust Corp raised its holdings in shares of Redwood Trust by 14.4% during 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 purchasing an additional 197,719 shares during the period. New York State Teachers Retirement System increased its stake in Redwood Trust by 1.5% during the 1st 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 purchasing an additional 2,326 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Redwood Trust by 33.3% in the 4th 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 in the last quarter. Finally, Principal Financial Group Inc. grew its holdings in Redwood Trust by 2.9% during the first quarter. Principal Financial Group Inc. now owns 659,909 shares of the real estate investment trust's stock worth $4,006,000 after buying an additional 18,499 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Stock Performance

RWT stock traded up $0.2550 during midday trading on Friday, reaching $6.1250. 1,087,028 shares of the company's stock traded hands, compared to its average volume of 1,341,703. The firm has a market capitalization of $791.47 million, a PE ratio of -9.57 and a beta of 1.31. The company has a 50-day moving average price of $5.88 and a two-hundred day moving average price of $5.94. Redwood Trust, Inc. has a 52 week low of $4.68 and a 52 week high of $8.15. The company has a debt-to-equity ratio of 20.00, a quick ratio of 40.39 and a current ratio of 40.39.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.01). Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. The company had revenue of ($38.10) million during the quarter, compared to analysts' expectations of $31.00 million. As a group, equities analysts anticipate that Redwood Trust, Inc. will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 11.8%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's dividend payout ratio is -112.50%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RWT. Wall Street Zen cut shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. UBS Group decreased their price target 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. JPMorgan Chase & Co. upped their price objective on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Jones Trading reiterated a "buy" rating and set a $7.00 target price on shares of Redwood Trust in a research note on Friday, May 2nd. Finally, Keefe, Bruyette & Woods reduced their price target on shares of 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. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $7.18.

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.