JPMorgan Chase & Co. Cuts Redwood Trust (NYSE:RWT) Price Target to $6.00

Key Points

• JPMorgan Chase & Co. lowered its price target on Redwood Trust from $6.50 to $6.00 while keeping an overweight rating on the stock. The new target still implies about 15.27% upside from the previous close.
• Other analysts have also trimmed expectations for Redwood Trust, including Citizens JMP and BTIG Research, while sentiment remains mixed across Wall Street. The stock currently has a Moderate Buy consensus with an average target price of $6.11.
• Redwood Trust shares were up 2.9% to $5.21 on Friday, and the stock has traded between $4.19 and $6.97 over the past 12 months. Institutional investors own a large majority of the company, holding about 74.34% of shares.

Redwood Trust (NYSE:RWT - Get Free Report) had its price target reduced by equities researchers at JPMorgan Chase & Co. from $6.50 to $6.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the real estate investment trust's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 15.27% from the stock's previous close.

A number of other brokerages have also recently issued reports on RWT. Citizens Jmp decreased 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. BTIG Research dropped their target price on shares of Redwood Trust from $8.50 to $6.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Zacks Research lowered Redwood Trust from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. Finally, JonesTrading restated a "buy" rating and issued a $6.25 price objective on shares of Redwood Trust in a research report on Thursday, April 30th. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Redwood Trust presently has an average rating of "Moderate Buy" and a consensus target price of $6.11.

Redwood Trust Trading Up 2.9%

Shares of NYSE:RWT opened at $5.21 on Friday. The stock has a 50 day moving average of $5.11 and a 200 day moving average of $5.55. The company has a market cap of $651.77 million, a PE ratio of -6.67 and a beta of 1.37. Redwood Trust has a 12-month low of $4.19 and a 12-month high of $6.97. The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42.

Hedge Funds Weigh In On Redwood Trust

Institutional investors have recently added to or reduced their stakes in the company. Tran Capital Management L.P. purchased a new stake in shares of Redwood Trust during the 4th quarter worth approximately $2,947,000. Evergreen Capital Management LLC grew its holdings in shares of Redwood Trust by 52.8% in the fourth quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust's stock valued at $9,257,000 after purchasing an additional 578,301 shares in the last quarter. UBS Group AG grew its holdings in shares of Redwood Trust by 521.1% in the fourth quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust's stock valued at $21,430,000 after purchasing an additional 3,251,302 shares in the last quarter. Counterpoint Mutual Funds LLC bought a new stake in Redwood Trust in the first quarter worth $876,000. Finally, Inscription Capital LLC bought a new stake in Redwood Trust in the fourth quarter worth $155,000. Hedge funds and other institutional investors own 74.34% of the company's stock.

Redwood Trust Company Profile

Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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