Y Intercept Hong Kong Ltd Purchases New Shares in Redwood Trust, Inc. (NYSE:RWT)

Key Points

• Y Intercept Hong Kong Ltd has acquired a new stake of 98,395 shares in Redwood Trust, Inc., valued at approximately $597,000, increasing their ownership to 0.07% of the company.
• Redwood Trust's stock has experienced a 0.5% decline, trading at $6.01, with a reported earnings per share (EPS) of $0.14 for the last quarter, missing analyst estimates.
• The company announced a quarterly dividend of $0.18 per share, which corresponds to an annualized yield of 11.98%, despite a high dividend payout ratio of 327.27%.

Y Intercept Hong Kong Ltd bought a new stake in shares of Redwood Trust, Inc. (NYSE:RWT - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 98,395 shares of the real estate investment trust's stock, valued at approximately $597,000. Y Intercept Hong Kong Ltd owned about 0.07% of Redwood Trust as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently modified their holdings of RWT. Cambridge Investment Research Advisors Inc. lifted its holdings in Redwood Trust by 3.1% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust's stock worth $360,000 after buying an additional 1,767 shares during the period. New York State Teachers Retirement System raised its stake in Redwood Trust by 1.5% in the 1st quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock worth $925,000 after acquiring an additional 2,326 shares during the last quarter. Focus Partners Wealth raised its position 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 buying an additional 2,488 shares during the period. Apollon Wealth Management LLC raised its position in shares of Redwood Trust by 3.9% during the 1st quarter. Apollon Wealth Management LLC now owns 81,897 shares of the real estate investment trust's stock valued at $497,000 after buying an additional 3,049 shares during the period. Finally, MetLife Investment Management LLC increased its holdings in 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 purchasing an additional 5,951 shares during the last quarter. Institutional investors own 74.34% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on RWT shares. Jones Trading reaffirmed a "buy" rating and set a $7.00 price objective on shares of Redwood Trust in a research report on Friday, May 2nd. Keefe, Bruyette & Woods downgraded shares of Redwood Trust from an "outperform" rating to a "market perform" rating and decreased their price objective for the company from $7.00 to $6.50 in a research note on Thursday, July 10th. JPMorgan Chase & Co. upped their target price on shares of Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a report on Thursday, May 1st. JMP Securities cut 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 report on Thursday. Finally, UBS Group cut their price target on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a report on Thursday. Six research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Redwood Trust has a consensus rating of "Moderate Buy" and a consensus price target of $7.28.

Redwood Trust Stock Performance

Redwood Trust stock traded down $0.06 during midday trading on Thursday, reaching $5.54. 402,175 shares of the stock traded hands, compared to its average volume of 974,431. The firm has a fifty day moving average price of $5.80 and a two-hundred day moving average price of $6.01. The firm has a market cap of $736.82 million, a price-to-earnings ratio of 25.34 and a beta of 1.30. Redwood Trust, Inc. has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The company has a current ratio of 39.35, a quick ratio of 39.35 and a debt-to-equity ratio of 16.32.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its quarterly earnings data on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.03). The firm had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. Redwood Trust had a return on equity of 7.82% and a net margin of 3.93%. On average, equities research analysts forecast that Redwood Trust, Inc. will post 0.78 earnings per share for the current 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 given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 13.01%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's dividend payout ratio is 327.27%.

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.