Voya Investment Management LLC Sells 65,968 Shares of Redwood Trust, Inc. $RWT

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 trimmed its stake in Redwood Trust, Inc. (NYSE:RWT - Free Report) by 8.6% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. 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.

Several other institutional investors also recently modified their holdings of RWT. Quantbot Technologies LP bought a new position in shares of Redwood Trust in the first quarter worth approximately $37,000. AlphaQuest LLC increased its position in shares of Redwood Trust by 165.5% in the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock worth $52,000 after purchasing an additional 5,354 shares during the last quarter. Carrera Capital Advisors bought a new position in shares of Redwood Trust in the first quarter worth approximately $65,000. XTX Topco Ltd bought a new position in shares of Redwood Trust in the first quarter worth approximately $65,000. Finally, Pinnacle Associates Ltd. bought a new position in shares of Redwood Trust in the first quarter worth approximately $68,000. 74.34% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts have issued reports on RWT shares. JMP Securities cut their target price 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. Keefe, Bruyette & Woods dropped 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. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. Finally, UBS Group lifted their price target on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research report on Wednesday, September 3rd. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Redwood Trust presently has an average rating of "Moderate Buy" and a consensus target price of $6.55.

Redwood Trust Stock Performance

Shares of Redwood Trust stock traded down $0.05 during trading hours on Friday, reaching $6.02. 2,854,021 shares of the stock traded hands, compared to its average volume of 812,159. The company has a 50 day moving average price of $6.00 and a 200 day moving average price of $5.88. The firm has a market capitalization of $777.90 million, a price-to-earnings ratio of -9.41 and a beta of 1.37. Redwood Trust, Inc. has a one year low of $4.68 and a one year high of $8.07. 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 released its quarterly 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 firm had revenue of ($38.10) million for the quarter, compared to the consensus estimate of $31.00 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. On average, equities research analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 23rd will be paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.0%. The ex-dividend date is Tuesday, September 23rd. Redwood Trust's payout ratio is currently -112.50%.

About Redwood Trust

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.