Redwood Trust, Inc. $RWT Shares Sold by Voya Investment Management LLC

Key Points

• Voya Investment Management LLC reduced its stake in Redwood Trust, Inc. by 8.6% in the first quarter, selling 65,968 shares, bringing its total holdings to approximately $4.24 million.
• Several large investors, including LSV Asset Management and Ceredex Value Advisors LLC, increased their positions in Redwood Trust, leading institutional investors to own 74.34% of the company's stock.
• The stock recently announced a quarterly dividend of $0.18 per share, translating to an annual yield of 12.0%, despite the company's negative net margin of 6.93%.

Voya Investment Management LLC lowered its stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) by 8.6% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 698,009 shares of the real estate investment trust's stock after selling 65,968 shares during the period. Voya Investment Management LLC owned approximately 0.52% of Redwood Trust worth $4,237,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Bank of America Corp DE lifted its holdings in Redwood Trust by 11.4% during the fourth quarter. Bank of America Corp DE now owns 397,466 shares of the real estate investment trust's stock valued at $2,595,000 after purchasing an additional 40,654 shares during the last quarter. Cetera Investment Advisers purchased a new stake in shares of Redwood Trust during the 4th quarter valued at $95,000. Deutsche Bank AG raised its position in shares of Redwood Trust by 61.9% during the 4th quarter. Deutsche Bank AG now owns 104,456 shares of the real estate investment trust's stock valued at $682,000 after buying an additional 39,943 shares in the last quarter. Focus Partners Wealth grew its holdings in shares of Redwood Trust by 14.1% during the 4th quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust's stock valued at $132,000 after purchasing an additional 2,488 shares during the last quarter. Finally, Millennium Management LLC grew its holdings in shares of Redwood Trust by 52.5% during the 4th quarter. Millennium Management LLC now owns 88,003 shares of the real estate investment trust's stock valued at $575,000 after purchasing an additional 30,286 shares during the last quarter. 74.34% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. 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 cut shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, August 2nd. JMP Securities reduced their price target on shares of 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. Finally, UBS Group boosted their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $6.55.

Redwood Trust Stock Up 1.7%

Redwood Trust stock traded up $0.10 during midday trading on Tuesday, hitting $5.80. 289,317 shares of the company's stock were exchanged, compared to its average volume of 1,007,304. The company has a market cap of $748.83 million, a PE ratio of -9.05 and a beta of 1.37. The firm has a 50-day moving average of $5.99 and a two-hundred day moving average of $5.87. Redwood Trust, Inc. has a 12 month low of $4.68 and a 12 month high of $7.90. 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 released its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). The firm had revenue of ($38.10) million for the quarter, compared to analysts' expectations of $31.00 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. As a group, analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 23rd will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 12.4%. The ex-dividend date of this dividend is Tuesday, September 23rd. 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.