Redwood Trust, Inc. (NYSE:RWT) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Redwood Trust, with six buys, three holds and two sells; the average 12-month price target is $6.00.
• Redwood Trust reported quarterly EPS of $0.25, exceeding the $0.23 consensus estimate, although revenue of $56.01 million fell short of the $89.45 million forecast.
• The company’s quarterly dividend equates to $0.72 annually and a 15.8% yield, while institutional investors and hedge funds own 74.34% of its shares.

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have received a consensus rating of "Hold" from the eleven ratings firms that are covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $6.00.

A number of equities research analysts recently issued reports on the stock. BTIG Research reiterated a "buy" rating and issued a $6.00 price objective on shares of Redwood Trust in a report on Tuesday, July 28th. Keefe, Bruyette & Woods cut their target price on Redwood Trust from $6.00 to $5.50 and set an "outperform" rating on the stock in a report on Wednesday, July 29th. Zacks Research cut Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 21st. Wells Fargo & Company decreased 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. Finally, Piper Sandler lowered their price objective on Redwood Trust from $6.50 to $5.50 and set a "neutral" rating on the stock in a report on Thursday, July 2nd.

Redwood Trust Price Performance

NYSE RWT opened at $4.57 on Thursday. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 29.41. The stock has a market capitalization of $571.63 million, a PE ratio of -114.10 and a beta of 1.38. Redwood Trust has a 12-month low of $4.19 and a 12-month high of $6.97. The company has a 50 day moving average price of $4.97 and a two-hundred day moving average price of $5.47.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $56.01 million for the quarter, compared to analyst estimates of $89.45 million. Redwood Trust had a net margin of 0.56% and a return on equity of 15.73%. As a group, equities analysts predict that Redwood Trust will post 1.03 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 15.8%. The ex-dividend date was Tuesday, June 23rd. Redwood Trust's payout ratio is -1,800.00%.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS Group AG grew its holdings in Redwood Trust by 521.1% in the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust's stock valued at $21,430,000 after buying an additional 3,251,302 shares during the last quarter. Wellington Management Group LLP increased its position in Redwood Trust by 10.2% during the third quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust's stock worth $86,969,000 after acquiring an additional 1,395,675 shares during the period. Evergreen Capital Management LLC raised its stake in Redwood Trust by 52.8% during the 4th 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 during the last quarter. Invesco Ltd. raised its stake in Redwood Trust by 25.4% during the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust's stock valued at $14,107,000 after purchasing an additional 516,630 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in Redwood Trust in the 1st quarter valued at $2,018,000. Institutional investors and hedge funds 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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