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Zacks Investment Research Downgrades Redwood Trust (NYSE:RWT) to Hold

Last updated on Tuesday, June 30, 2020 | 2020 MarketBeat

Redwood Trust (NYSE:RWT) was downgraded by Zacks Investment Research from a "buy" rating to a "hold" rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, "REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. "

Several other equities research analysts also recently issued reports on RWT. JMP Securities cut their price objective on shares of Redwood Trust from $10.00 to $5.00 and set a "market outperform" rating for the company in a research report on Friday, April 3rd. Piper Sandler raised their price objective on shares of Redwood Trust from $5.50 to $7.50 and gave the stock a "neutral" rating in a research report on Friday. Raymond James raised their price objective on shares of Redwood Trust from $7.00 to $8.00 and gave the stock an "outperform" rating in a research report on Friday, June 12th. ValuEngine upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a research report on Monday, May 11th. Finally, Credit Suisse Group raised their price objective on shares of Redwood Trust from $6.50 to $8.00 and gave the stock an "outperform" rating in a research report on Monday, June 8th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Redwood Trust presently has a consensus rating of "Buy" and a consensus price target of $9.38.

Shares of NYSE:RWT opened at $7.00 on Tuesday. Redwood Trust has a 52-week low of $2.14 and a 52-week high of $18.01. The company has a market capitalization of $793.48 million, a P/E ratio of -0.96 and a beta of 1.16. The company has a 50-day simple moving average of $5.85 and a 200 day simple moving average of $10.77. The company has a debt-to-equity ratio of 12.29, a quick ratio of 4.36 and a current ratio of 4.36.

In other Redwood Trust news, Director Fred Matera bought 13,000 shares of the stock in a transaction dated Friday, May 15th. The shares were bought at an average cost of $3.80 per share, with a total value of $49,400.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.50% of the stock is currently owned by company insiders.

A number of large investors have recently made changes to their positions in the stock. State Street Corp increased its stake in Redwood Trust by 47.6% in the first quarter. State Street Corp now owns 5,363,558 shares of the real estate investment trust's stock valued at $27,175,000 after acquiring an additional 1,730,379 shares during the last quarter. Guggenheim Capital LLC increased its stake in Redwood Trust by 27.2% in the first quarter. Guggenheim Capital LLC now owns 437,624 shares of the real estate investment trust's stock valued at $2,214,000 after acquiring an additional 93,630 shares during the last quarter. Verus Capital Partners LLC increased its stake in Redwood Trust by 89.2% in the first quarter. Verus Capital Partners LLC now owns 5,053 shares of the real estate investment trust's stock valued at $26,000 after acquiring an additional 2,382 shares during the last quarter. Sculati Wealth Management LLC increased its stake in Redwood Trust by 4.4% in the first quarter. Sculati Wealth Management LLC now owns 77,282 shares of the real estate investment trust's stock valued at $391,000 after acquiring an additional 3,250 shares during the last quarter. Finally, AQR Capital Management LLC increased its stake in Redwood Trust by 34.5% in the first quarter. AQR Capital Management LLC now owns 75,879 shares of the real estate investment trust's stock valued at $384,000 after acquiring an additional 19,479 shares during the last quarter. 87.43% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.

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