Redwood Trust, Inc. $RWT Stock Position Lowered by Invesco Ltd.

Key Points

• Invesco Ltd. reduced its stake in Redwood Trust, Inc. by 9.6%, now holding approximately 1.36% of the company's shares, worth around $10.95 million.
• Redwood Trust reported a loss in quarterly earnings, with an EPS of $0.18, missing estimates by $0.01, and a revenue of ($38.10) million, lower than expected.
• The company recently paid a dividend of $0.18 per share, reflecting a high annualized yield of 11.8%, despite having a negative dividend payout ratio.

Invesco Ltd. lessened its holdings in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 9.6% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,804,116 shares of the real estate investment trust's stock after selling 191,404 shares during the period. Invesco Ltd. owned 1.36% of Redwood Trust worth $10,951,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Cambridge Investment Research Advisors Inc. grew its position in shares of 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 valued at $360,000 after buying an additional 1,767 shares during the last quarter. Northern Trust Corp grew its position in shares of Redwood Trust by 14.4% during the 4th quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust's stock valued at $10,248,000 after buying an additional 197,719 shares during the last quarter. New York State Teachers Retirement System grew its position in Redwood Trust by 1.5% in the 1st quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock worth $925,000 after purchasing an additional 2,326 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew 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 worth $2,539,000 after purchasing an additional 97,205 shares during the last quarter. Finally, Principal Financial Group Inc. increased its stake 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 purchasing an additional 18,499 shares during the period. Institutional investors own 74.34% of the company's stock.

Redwood Trust Price Performance

NYSE:RWT traded up $0.10 during trading hours on Friday, reaching $6.12. 818,815 shares of the company's stock were exchanged, compared to its average volume of 1,151,177. The company has a market capitalization of $790.18 million, a P/E ratio of -9.55 and a beta of 1.31. Redwood Trust, Inc. has a 12 month low of $4.68 and a 12 month high of $8.15. The company has a quick ratio of 40.39, a current ratio of 40.39 and a debt-to-equity ratio of 20.00. The business's 50-day simple moving average is $5.93 and its two-hundred day simple moving average is $5.92.

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

Redwood Trust Dividend Announcement

The firm 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 was Monday, June 23rd. Redwood Trust's dividend payout ratio (DPR) is presently -112.50%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RWT shares. Keefe, Bruyette & Woods dropped their price target on shares of Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a research note on Tuesday, August 5th. Wall Street Zen lowered shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. JMP Securities dropped their price target on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a research note on Thursday, July 31st. UBS Group dropped their price target on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a research note on Thursday, July 31st. Finally, JPMorgan Chase & Co. raised their price target on shares of Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average 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.