Christopher Abate Purchases 100,000 Shares of Redwood Trust (NYSE:RWT) Stock

Key Points

• CEO Christopher Abate bought 100,000 Redwood Trust shares at an average price of $3.84, investing $384,000 and increasing his direct ownership by 17.26% to 679,283 shares.
• Redwood Trust shares rose 3.8% to $3.98, while the company reported quarterly EPS of $0.25, exceeding estimates of $0.23. However, revenue of $56.01 million fell short of the $89.45 million analyst estimate.
• The REIT declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and an 18.1% yield. Analysts’ consensus rating is “Hold,” with an average price target of $5.84.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) CEO Christopher Abate bought 100,000 shares of Redwood Trust stock in a transaction dated Tuesday, September 15th. The shares were acquired at an average cost of $3.84 per share, for a total transaction of $384,000.00. Following the completion of the purchase, the chief executive officer directly owned 679,283 shares of the company's stock, valued at approximately $2,608,446.72. This trade represents a 17.26% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Redwood Trust Trading Up 3.8%

NYSE:RWT traded up $0.14 during trading hours on Tuesday, hitting $3.98. The company had a trading volume of 6,907,639 shares, compared to its average volume of 2,336,734. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. The stock has a 50-day moving average price of $4.69 and a 200 day moving average price of $5.20. The company has a market capitalization of $499.30 million, a PE ratio of -99.10 and a beta of 1.37. Redwood Trust, Inc. has a 52 week low of $3.22 and a 52 week high of $6.97.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The business had revenue of $56.01 million during the quarter, compared to analyst estimates of $89.45 million. On average, equities research analysts predict that Redwood Trust, Inc. will post 1.03 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be issued a $0.18 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 18.1%. Redwood Trust's dividend payout ratio (DPR) is -1,800.00%.

Institutional Investors Weigh In On Redwood Trust

Institutional investors and hedge funds have recently made changes to their positions in the company. Bank of New York Mellon Corp lifted its holdings in Redwood Trust by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust's stock valued at $3,385,000 after acquiring an additional 2,627 shares during the period. Bank of America Corp DE boosted its holdings in shares of Redwood Trust by 66.4% in the first quarter. Bank of America Corp DE now owns 395,286 shares of the real estate investment trust's stock worth $2,218,000 after buying an additional 157,795 shares during the last quarter. Quantinno Capital Management LP grew its position in Redwood Trust by 22.7% during the first quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust's stock valued at $2,098,000 after buying an additional 69,173 shares during the period. Legal & General Group Plc bought a new stake in Redwood Trust during the second quarter valued at approximately $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Redwood Trust by 7,932.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust's stock valued at $1,256,000 after buying an additional 261,759 shares during the last quarter. Institutional investors own 74.34% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Piper Sandler lowered their target price on Redwood Trust from $6.50 to $5.50 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Wells Fargo & Company decreased their price objective on Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a report on Wednesday, July 29th. JonesTrading lowered their price objective on Redwood Trust from $6.25 to $6.00 and set a "buy" rating for the company in a research report on Tuesday, July 28th. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Finally, Citizens Jmp reduced their target price on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a research report on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $5.84.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.

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