Redwood Trust (NYSE:RWT) President Dashiell Robinson Buys 63,211 Shares of Stock

Key Points

• Redwood Trust President Dashiell Robinson bought 63,211 shares at an average price of $3.98, investing approximately $251,580 and increasing his ownership by 19.05%.
• RWT shares traded at $3.91, near the lower end of their 52-week range, while the company reported quarterly EPS of $0.25, exceeding the $0.23 consensus estimate but recording revenue below forecasts.
• Redwood Trust declared a quarterly dividend of $0.18 per share, equivalent to a 18.4% annualized yield; analysts maintain a consensus “Hold” rating with an average price target of $5.84.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) President Dashiell Robinson acquired 63,211 shares of the stock in a transaction that occurred on Wednesday, September 16th. The stock was purchased at an average price of $3.98 per share, with a total value of $251,579.78. Following the completion of the transaction, the president owned 395,050 shares of the company's stock, valued at approximately $1,572,299. This trade represents a 19.05% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Redwood Trust Stock Up 0.0%

RWT stock traded up $0.00 during midday trading on Wednesday, hitting $3.91. The company's stock had a trading volume of 3,302,224 shares, compared to its average volume of 2,365,776. 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 company's fifty day moving average price is $4.67 and its 200 day moving average price is $5.19. The stock has a market capitalization of $491.26 million, a P/E ratio of -97.85 and a beta of 1.37. Redwood Trust, Inc. has a twelve month low of $3.22 and a twelve month high of $6.97.

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, topping the consensus estimate of $0.23 by $0.02. The firm 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, equities research analysts predict that Redwood Trust, Inc. will post 1.03 EPS for the current year.

Redwood Trust Announces Dividend

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 issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.4%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust's dividend payout ratio (DPR) is currently -1,800.00%.

Institutional Trading of Redwood Trust

Large investors have recently bought and sold shares of the company. WINTON GROUP Ltd raised its stake 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 valued at $364,000 after purchasing an additional 7,500 shares during the period. Engineers Gate Manager LP boosted its stake in Redwood Trust by 33.5% during 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 period. Squarepoint Ops LLC purchased a new stake in shares of Redwood Trust in the 2nd quarter valued at about $157,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Redwood Trust in the second quarter valued at approximately $990,000. Finally, Two Sigma Securities LLC purchased a new stake in shares of Redwood Trust during the 2nd quarter valued at $140,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Wells Fargo & Company dropped their price target 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. UBS Group dropped their price target on Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a research note on Friday, August 21st. Citizens Jmp cut their price objective 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. Piper Sandler cut their target price on Redwood Trust from $6.50 to $5.50 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Finally, Keefe, Bruyette & Woods dropped their price target on shares of Redwood Trust from $5.50 to $4.75 and set an "outperform" rating on the stock in a research report on Monday. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus 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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