Vanguard Group Inc. Sells 479,825 Shares of Redwood Trust, Inc. $RWT

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. lessened its holdings in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 3.2% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,293,742 shares of the real estate investment trust's stock after selling 479,825 shares during the quarter. Vanguard Group Inc. owned approximately 10.75% of Redwood Trust worth $86,763,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of RWT. Barclays PLC grew its stake in Redwood Trust by 6.0% during the 4th quarter. Barclays PLC now owns 231,997 shares of the real estate investment trust's stock valued at $1,514,000 after acquiring an additional 13,097 shares in the last quarter. MetLife Investment Management LLC grew its stake in shares of Redwood Trust by 8.6% in the 4th quarter. MetLife Investment Management LLC now owns 75,463 shares of the real estate investment trust's stock valued at $493,000 after buying an additional 5,951 shares in the last quarter. Tower Research Capital LLC TRC grew its stake in shares of Redwood Trust by 239.3% in the 4th quarter. Tower Research Capital LLC TRC now owns 12,566 shares of the real estate investment trust's stock valued at $82,000 after buying an additional 8,863 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Redwood Trust by 14.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 154,404 shares of the real estate investment trust's stock valued at $1,009,000 after buying an additional 19,094 shares in the last quarter. Finally, Northern Trust Corp grew its stake in shares of Redwood Trust by 14.4% in 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 in the last quarter. Hedge funds and other institutional investors own 74.34% of the company's stock.

Wall Street Analyst Weigh In

RWT has been the subject of several recent research reports. Jones Trading reissued a "buy" rating and issued a $7.00 price target on shares of Redwood Trust in a research note on Friday, May 2nd. Wall Street Zen cut Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. JPMorgan Chase & Co. boosted their price target on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Keefe, Bruyette & Woods lowered their price target on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research note on Tuesday, August 5th. Finally, JMP Securities lowered their price target on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research note on Thursday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Redwood Trust presently has a consensus rating of "Moderate Buy" and a consensus price target of $7.18.

Redwood Trust Stock Performance

Shares of RWT stock 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. Redwood Trust, Inc. has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The stock has a market capitalization of $790.18 million, a P/E ratio of -9.55 and a beta of 1.31. The business has a fifty day moving average price of $5.93 and a 200-day moving average price of $5.92. The company has a quick ratio of 40.39, a current 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 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 positive return on equity of 8.70% and a negative net margin of 6.93%.The business had revenue of ($38.10) million for the quarter, compared to analyst estimates of $31.00 million. Analysts predict that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

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 11.8%. Redwood Trust's payout ratio is -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.