Greg Kubicek Purchases 50,000 Shares of Redwood Trust (NYSE:RWT) Stock

Key Points

• Director Greg Kubicek purchased 50,000 Redwood Trust shares at an average price of $3.85, investing $192,500 and increasing his direct holdings by 64.78% to 127,185 shares.
• Redwood Trust shares closed at $3.96, near the lower end of their 12-month range, while the company’s latest quarterly EPS of $0.25 exceeded analyst expectations but revenue fell short of estimates.
• The company declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and an 18.2% yield. Analysts’ consensus rating remains “Hold,” with an average price target of $5.84.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) Director Greg Kubicek bought 50,000 shares of the business's stock in a transaction on Tuesday, September 15th. The stock was bought at an average price of $3.85 per share, for a total transaction of $192,500.00. Following the completion of the purchase, the director directly owned 127,185 shares of the company's stock, valued at $489,662.25. The trade was a 64.78% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

Redwood Trust Stock Performance

Shares of Redwood Trust stock traded up $0.14 during trading on Tuesday, hitting $3.96. 6,907,639 shares of the stock were exchanged, compared to its average volume of 2,336,734. The company has a debt-to-equity ratio of 31.69, a quick ratio of 67.49 and a current ratio of 67.49. Redwood Trust, Inc. has a 12 month low of $3.22 and a 12 month high of $6.97. The stock's fifty day moving average is $4.69 and its 200 day moving average is $5.20. The stock has a market cap of $498.04 million, a PE ratio of -99.35 and a beta of 1.37.

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

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 18.2%. Redwood Trust's payout ratio is presently -1,800.00%.

Analyst Upgrades and Downgrades

RWT has been the subject of a number of research reports. JonesTrading decreased their price target on Redwood Trust from $6.25 to $6.00 and set a "buy" rating for the company in a research note on Tuesday, July 28th. JPMorgan Chase & Co. cut their price objective on Redwood Trust from $6.50 to $6.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Wells Fargo & Company decreased their target price on Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 29th. BTIG Research reaffirmed a "buy" rating and set a $6.00 target price on shares of Redwood Trust in a report on Tuesday, July 28th. Finally, Piper Sandler dropped their price target on shares of Redwood Trust from $6.50 to $5.50 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Six investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Redwood Trust currently has a consensus rating of "Hold" and an average price target of $5.84.

Institutional Trading of Redwood Trust

Institutional investors and hedge funds have recently bought and sold shares of the stock. Clearstead Advisors LLC lifted its stake in Redwood Trust by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust's stock valued at $30,000 after buying an additional 3,572 shares in the last quarter. Bank of Marin purchased a new position in shares of Redwood Trust in the fourth quarter worth approximately $58,000. Optiver Holding B.V. raised its holdings in shares of Redwood Trust by 2,034.5% during the first quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust's stock valued at $60,000 after acquiring an additional 10,274 shares during the period. Quotient Wealth Partners LLC acquired a new stake in shares of Redwood Trust during the first quarter valued at approximately $76,000. Finally, Evanson Financial LLC purchased a new stake in shares of Redwood Trust in the 2nd quarter valued at approximately $66,000. Institutional investors and hedge funds own 74.34% of the company's stock.

Redwood Trust Company Profile

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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