Insider Buying: Redwood Trust (NYSE:RWT) Insider Acquires 4,895 Shares of Stock

Key Points

• Redwood Trust insider Sasha Macomber purchased 4,895 shares at an average price of $4.08, increasing their stake by 5.41% to 95,298 shares.
• RWT shares traded around $4.04, near the lower end of their 52-week range, while the company reported quarterly EPS of $0.25—above analysts’ $0.23 estimate—but revenue of $56.01 million fell short of expectations.
• Redwood Trust declared a quarterly dividend of $0.18, equivalent to a $0.72 annualized payout and an approximately 17.8% yield; analysts maintain a consensus “Hold” rating with an average price target of $5.84.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) insider Sasha Macomber acquired 4,895 shares of the company's stock in a transaction that occurred on Monday, September 21st. The shares were acquired at an average cost of $4.08 per share, with a total value of $19,971.60. Following the purchase, the insider owned 95,298 shares in the company, valued at $388,815.84. This represents a 5.41% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Redwood Trust Price Performance

RWT traded up $0.10 during trading on Monday, reaching $4.04. The company's stock had a trading volume of 8,258,999 shares, compared to its average volume of 2,490,048. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The firm has a fifty day simple moving average of $4.61 and a two-hundred day simple moving average of $5.14. Redwood Trust, Inc. has a 1 year low of $3.22 and a 1 year high of $6.97. The company has a market cap of $507.46 million, a price-to-earnings ratio of -100.97 and a beta of 1.37.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its quarterly 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 return on equity of 16.02% and a net margin of 0.42%.The business had revenue of $56.01 million during the quarter, compared to analyst estimates of $89.45 million. As a group, analysts anticipate that Redwood Trust, Inc. will post 1.03 EPS for the current year.

Redwood Trust Announces Dividend

The business also recently announced 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. This represents a $0.72 annualized dividend and a yield of 17.8%. The ex-dividend date is Wednesday, September 23rd. Redwood Trust's dividend payout ratio is presently -1,800.00%.

Hedge Funds Weigh In On Redwood Trust

Large investors have recently modified their holdings of the business. WINTON GROUP Ltd increased its position in shares of Redwood Trust by 10.8% during the 2nd quarter. WINTON GROUP Ltd now owns 76,700 shares of the real estate investment trust's stock worth $364,000 after purchasing an additional 7,500 shares during the last quarter. Engineers Gate Manager LP lifted its position in Redwood Trust by 33.5% in the second quarter. Engineers Gate Manager LP now owns 45,400 shares of the real estate investment trust's stock valued at $215,000 after buying an additional 11,400 shares during the last quarter. Squarepoint Ops LLC acquired a new position in Redwood Trust in the second quarter valued at about $157,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Redwood Trust during the second quarter worth about $990,000. Finally, Two Sigma Securities LLC purchased a new position in Redwood Trust during the second quarter worth about $140,000. Institutional investors and hedge funds own 74.34% of the company's stock.

Wall Street Analysts Forecast Growth

RWT has been the topic of several analyst reports. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Wells Fargo & Company cut their price objective on shares of Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 29th. JonesTrading reduced their target price on shares of Redwood Trust from $6.25 to $6.00 and set a "buy" rating on the stock in a research note on Tuesday, July 28th. UBS Group reduced their target price on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a research note on Friday, August 21st. Finally, Zacks Research upgraded shares of Redwood Trust from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 15th. Six investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price 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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