Redwood Trust, Inc. $RWT Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group Inc. has decreased its holdings in Redwood Trust, Inc. by 3.2%, selling 479,825 shares and now owns 14,293,742 shares valued at approximately $86.76 million.
• Redwood Trust reported a quarterly earnings miss with an EPS of $0.18, falling short of analysts' expectations of $0.19 and generating negative revenue of $38.10 million.
• The company declared a quarterly dividend of $0.18 per share, reflecting an annual yield of 11.8%, despite a negative dividend payout ratio of -112.50%.

Vanguard Group Inc. cut its holdings in Redwood Trust, Inc. (NYSE:RWT - Free Report) by 3.2% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 14,293,742 shares of the real estate investment trust's stock after selling 479,825 shares during the period. Vanguard Group Inc. owned about 10.75% of Redwood Trust worth $86,763,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in RWT. LSV Asset Management grew its holdings in Redwood Trust by 58.9% during the 1st quarter. LSV Asset Management now owns 1,772,345 shares of the real estate investment trust's stock valued at $10,758,000 after purchasing an additional 657,141 shares during the last quarter. XTX Topco Ltd bought a new position in Redwood Trust during the 1st quarter valued at about $65,000. Carrera Capital Advisors bought a new position in Redwood Trust during the 1st quarter valued at about $65,000. Pinnacle Associates Ltd. bought a new position in Redwood Trust during the 1st quarter valued at about $68,000. Finally, Y Intercept Hong Kong Ltd bought a new position in Redwood Trust during the 1st quarter valued at about $597,000. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Stock Up 0.4%

NYSE:RWT traded up $0.03 during midday trading on Thursday, reaching $6.03. 427,338 shares of the stock traded hands, compared to its average volume of 1,007,656. Redwood Trust, Inc. has a 12-month low of $4.68 and a 12-month high of $8.15. The business has a 50-day moving average of $5.91 and a two-hundred day moving average of $5.92. The company has a debt-to-equity ratio of 20.00, a quick ratio of 40.39 and a current ratio of 40.39. The stock has a market capitalization of $778.57 million, a PE ratio of -9.41 and a beta of 1.31.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts' consensus estimates 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 firm had revenue of ($38.10) million for the quarter, compared to analysts' expectations of $31.00 million. On average, equities analysts forecast that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were paid 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 yield of 12.0%. Redwood Trust's dividend payout ratio is presently -112.50%.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Jones Trading reiterated a "buy" rating and set a $7.00 price target on shares of Redwood Trust in a report on Friday, May 2nd. 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. Wall Street Zen downgraded shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. UBS Group cut their price target on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a report on Thursday, July 31st. Finally, JMP Securities cut 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 report on Thursday, July 31st. One investment 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.com, Redwood Trust presently has a consensus rating of "Moderate Buy" and a consensus price target 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.