Invesco Ltd. Has $10.95 Million Stock Position in Redwood Trust, Inc. $RWT

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. decreased its position in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 9.6% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm 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 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of RWT. Cambridge Investment Research Advisors Inc. boosted its position 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 worth $360,000 after purchasing an additional 1,767 shares in the last quarter. New York State Teachers Retirement System lifted its position in Redwood Trust by 1.5% during the first quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock worth $925,000 after buying an additional 2,326 shares during the period. Focus Partners Wealth lifted its position in Redwood Trust by 14.1% during the fourth quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust's stock worth $132,000 after buying an additional 2,488 shares during the period. Apollon Wealth Management LLC lifted its position in Redwood Trust by 3.9% during the first quarter. Apollon Wealth Management LLC now owns 81,897 shares of the real estate investment trust's stock worth $497,000 after buying an additional 3,049 shares during the period. Finally, MetLife Investment Management LLC lifted its position in Redwood Trust by 8.6% during the fourth quarter. MetLife Investment Management LLC now owns 75,463 shares of the real estate investment trust's stock worth $493,000 after buying an additional 5,951 shares during the period. Institutional investors and hedge funds own 74.34% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. UBS Group reduced their target price on Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a research report on Thursday, July 31st. JMP Securities reduced their price objective on 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. Keefe, Bruyette & Woods cut 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 report on Tuesday, August 5th. 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 report on Thursday, May 1st. Finally, Jones Trading reiterated a "buy" rating and issued a $7.00 target price on shares of Redwood Trust in a research note on Friday, May 2nd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Redwood Trust has an average rating of "Moderate Buy" and an average price target of $7.18.

Redwood Trust Price Performance

Shares of RWT traded up $0.03 during midday trading on Thursday, reaching $6.03. The stock had a trading volume of 427,338 shares, compared to its average volume of 1,007,656. The company has a debt-to-equity ratio of 20.00, a current ratio of 40.39 and a quick ratio of 40.39. The company has a market capitalization of $778.57 million, a P/E ratio of -9.41 and a beta of 1.31. The firm's 50 day moving average price is $5.91 and its 200-day moving average price is $5.92. Redwood Trust, Inc. has a 52 week low of $4.68 and a 52 week high of $8.15.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The company had revenue of ($38.10) million during the quarter, compared to analyst estimates of $31.00 million. Redwood Trust had a positive return on equity of 8.70% and a negative net margin of 6.93%. On average, analysts forecast that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 23rd were issued a dividend of $0.18 per share. The ex-dividend date was Monday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.0%. Redwood Trust's payout ratio is currently -112.50%.

Redwood Trust 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.