Redwood Trust (NYSE:RWT) CFO Buys 26,065 Shares

Key Points

• Redwood Trust CFO Brooke Carillo purchased 26,065 shares at an average price of $3.85, investing about $100,350 and increasing her direct ownership by 22.78% to 140,481 shares.
• Shares rose 3.5% to $3.96, while the company reported quarterly EPS of $0.25, above the $0.23 analyst consensus, despite revenue of $56.01 million falling short of estimates.
• Redwood declared a quarterly dividend of $0.18 per share, equivalent to an annualized $0.72 payout and an indicated yield of 18.2%; analysts’ average rating is “Hold,” with an average price target of $5.84.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) CFO Brooke Carillo bought 26,065 shares of the business's stock in a transaction on Tuesday, September 15th. The stock was bought at an average cost of $3.85 per share, for a total transaction of $100,350.25. Following the purchase, the chief financial officer directly owned 140,481 shares of the company's stock, valued at approximately $540,851.85. This trade represents a 22.78% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Redwood Trust Trading Up 3.5%

Shares of Redwood Trust stock traded up $0.14 during trading on Tuesday, hitting $3.96. 6,907,639 shares of the company were exchanged, compared to its average volume of 2,336,734. The firm has a market capitalization of $498.04 million, a P/E ratio of -99.35 and a beta of 1.37. Redwood Trust, Inc. has a 1-year low of $3.22 and a 1-year high of $6.97. The firm's fifty day moving average price is $4.69 and its 200 day moving average price is $5.20. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49.

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

Redwood Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.2%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust's dividend payout ratio (DPR) is currently -1,800.00%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RWT. Keefe, Bruyette & Woods dropped their price objective on Redwood Trust from $5.50 to $4.75 and set an "outperform" rating on the stock in a research note on Monday. UBS Group decreased their target price on Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a research note on Friday, August 21st. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Citizens Jmp cut their price objective on Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a report on Wednesday, July 8th. Finally, Zacks Research lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 21st. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $5.84.

Institutional Trading of Redwood Trust

A number of institutional investors have recently modified their holdings of RWT. Clearstead Advisors LLC boosted its position in shares of 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 worth $30,000 after buying an additional 3,572 shares during the period. Bank of Marin acquired a new stake in Redwood Trust in the 4th quarter valued at approximately $58,000. Optiver Holding B.V. lifted its stake in Redwood Trust by 2,034.5% in the 1st 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 in the last quarter. Evanson Financial LLC acquired a new position in Redwood Trust during the 2nd quarter worth approximately $66,000. Finally, Quotient Wealth Partners LLC acquired a new position in Redwood Trust during the 1st quarter worth approximately $76,000. 74.34% of the stock is currently owned by institutional investors.

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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