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

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have received an average rating of "Moderate Buy" from the nine research firms that are covering the company, Marketbeat reports. Four research analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $7.44.

Several equities analysts have issued reports on the stock. JMP Securities decreased their price target on shares of Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating for the company in a research report on Thursday, April 17th. Wall Street Zen upgraded Redwood Trust from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. UBS Group raised their target price on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research report on Monday, May 5th. JPMorgan Chase & Co. upped their price target on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research report on Thursday, May 1st. Finally, Jones Trading reissued a "buy" rating and issued a $7.00 price target on shares of Redwood Trust in a research note on Friday, May 2nd.

Redwood Trust Price Performance

Shares of RWT opened at $5.59 on Friday. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.09. The stock has a market cap of $743.46 million, a PE ratio of 16.92 and a beta of 1.45. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $8.15. The business has a 50-day simple moving average of $5.65 and a two-hundred day simple moving average of $6.26.

Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.03). Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. The firm had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. Analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Monday, March 24th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.89%. The ex-dividend date was Monday, March 24th. Redwood Trust's dividend payout ratio is 327.27%.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently added to or reduced their stakes in the business. Northern Trust Corp raised its holdings in shares of Redwood Trust by 14.4% during the fourth quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust's stock valued at $10,248,000 after purchasing an additional 197,719 shares during the period. Principal Financial Group Inc. raised its position in Redwood Trust by 2.9% in the 4th quarter. Principal Financial Group Inc. now owns 641,410 shares of the real estate investment trust's stock valued at $4,188,000 after buying an additional 18,164 shares during the last quarter. Van ECK Associates Corp grew its stake in shares of Redwood Trust by 18.0% in the 4th quarter. Van ECK Associates Corp now owns 1,085,593 shares of the real estate investment trust's stock worth $7,089,000 after acquiring an additional 165,281 shares in the last quarter. Boston Partners boosted its holdings in Redwood Trust by 8.3% during the fourth quarter. Boston Partners now owns 2,707,027 shares of the real estate investment trust's stock worth $17,561,000 after purchasing an additional 206,698 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in Redwood Trust by 9.8% in the 4th quarter. Bank of New York Mellon Corp now owns 1,003,627 shares of the real estate investment trust's stock worth $6,554,000 after purchasing an additional 89,335 shares in the last quarter. Institutional investors and hedge funds own 74.34% of the company's stock.

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 three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.

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