Redwood Trust, Inc. (NYSE:RWT) Receives $7.18 Consensus Price Target from Analysts

Key Points

• Redwood Trust, Inc. has received a consensus recommendation of "Moderate Buy" from seven research firms, with an average target price of $7.1786.
• Institutional investors have significantly increased their holdings in Redwood Trust, with Invesco Ltd. raising its stake by 150.9% in the last quarter.
• The company reported negative earnings for the latest quarter, missing expectations with an EPS of $0.18 and a revenue of ($38.10 million).

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have been assigned an average rating of "Moderate Buy" from the seven research firms that are presently covering the stock, MarketBeat.com reports. Three investment analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $7.1786.

RWT has been the topic of several recent analyst reports. Jones Trading reiterated a "buy" rating and issued a $7.00 price target on shares of Redwood Trust in a research note on Friday, May 2nd. Keefe, Bruyette & Woods decreased their price target on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a research note on Tuesday, August 5th. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. UBS Group decreased 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 Thursday, July 31st. Finally, JPMorgan Chase & Co. boosted their price objective on Redwood Trust from $5.50 to $6.00 and gave the stock a "neutral" rating in a research report on Thursday, May 1st.

Institutional Investors Weigh In On Redwood Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of RWT. Invesco Ltd. grew its position in Redwood Trust by 150.9% during the 4th quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust's stock worth $13,031,000 after acquiring an additional 1,200,050 shares during the last quarter. LSV Asset Management grew its position in Redwood Trust by 58.9% during the 1st quarter. LSV Asset Management now owns 1,772,345 shares of the real estate investment trust's stock worth $10,758,000 after acquiring an additional 657,141 shares during the last quarter. Jane Street Group LLC bought a new stake in Redwood Trust during the 1st quarter worth $2,018,000. Nuveen LLC bought a new stake in Redwood Trust during the 1st quarter worth $1,983,000. Finally, Balyasny Asset Management L.P. grew its position in Redwood Trust by 19.2% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust's stock worth $13,023,000 after acquiring an additional 321,612 shares during the last quarter. Institutional investors own 74.34% of the company's stock.

Redwood Trust Price Performance

NYSE RWT traded up $0.2550 during midday trading on Wednesday, hitting $6.1250. The company had a trading volume of 1,087,027 shares, compared to its average volume of 1,016,030. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $8.15. The firm has a 50-day moving average price of $5.88 and a 200-day moving average price of $5.94. The company has a current ratio of 40.39, a quick ratio of 40.39 and a debt-to-equity ratio of 20.00. The company has a market capitalization of $791.49 million, a PE ratio of -9.57 and a beta of 1.31.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.01). Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. The business had revenue of ($38.10) million during the quarter, compared to the consensus estimate of $31.00 million. As a group, analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were given a dividend of $0.18 per share. The ex-dividend date was Monday, June 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 11.8%. Redwood Trust's payout ratio is currently -112.50%.

About Redwood Trust

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.