Wellington Management Group LLP Has $41.41 Million Holdings in Redwood Trust, Inc. $RWT

Key Points

• Wellington Management reduced its Redwood Trust stake by 20.9% in the second quarter, selling 2.31 million shares and retaining 8.74 million shares worth approximately $41.4 million. Institutional investors collectively own 74.34% of the company.
• Analyst sentiment remains mixed, with Redwood Trust holding a consensus “Hold” rating and an average price target of $5.94. Recent analysts lowered price targets, although JPMorgan maintained an “overweight” rating and Citizens JMP retained “market outperform.”
• Redwood Trust reported quarterly EPS of $0.25, beating estimates of $0.23, but revenue of $56.01 million fell short of the $89.45 million consensus forecast. The company paid a quarterly dividend of $0.18 per share, representing a 16% annualized yield at the time.

Wellington Management Group LLP cut its stake in Redwood Trust, Inc. (NYSE:RWT - Free Report) by 20.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,735,371 shares of the real estate investment trust's stock after selling 2,311,127 shares during the period. Wellington Management Group LLP owned 6.95% of Redwood Trust worth $41,406,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. UBS Group AG lifted its holdings in Redwood Trust by 521.1% during the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust's stock worth $21,430,000 after buying an additional 3,251,302 shares in the last quarter. Invesco Ltd. raised its position in shares of Redwood Trust by 25.4% during the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust's stock worth $14,107,000 after acquiring an additional 516,630 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Redwood Trust during the second quarter valued at $2,032,000. Jane Street Group LLC acquired a new position in shares of Redwood Trust during the first quarter valued at $2,018,000. Finally, Legal & General Group Plc bought a new position in Redwood Trust in the second quarter valued at about $1,349,000. 74.34% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have weighed in on RWT shares. Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Piper Sandler lowered their price target on shares of Redwood Trust from $6.50 to $5.50 and set a "neutral" rating for the company in a research report on Thursday, July 2nd. JPMorgan Chase & Co. cut their price objective on shares of Redwood Trust from $6.50 to $6.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. Wall Street Zen raised shares of Redwood Trust from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Citizens Jmp cut their price target on Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a research note on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $5.94.

Redwood Trust Stock Performance

RWT stock opened at $4.51 on Friday. Redwood Trust, Inc. has a 1-year low of $4.19 and a 1-year high of $6.97. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69. The firm has a market cap of $566.51 million, a PE ratio of -112.72 and a beta of 1.37. The business's 50-day moving average price is $4.76 and its two-hundred day moving average price is $5.30.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The company had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. As a group, research analysts forecast that Redwood Trust, Inc. will post 1.03 earnings per share for the current year.

Redwood Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 16.0%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust's dividend payout ratio is presently -1,800.00%.

Redwood Trust Profile

Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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