Redwood Trust, Inc. (NYSE:RWT) Receives $7.18 Consensus Target Price 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 company, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $7.1786.

RWT has been the subject of several analyst reports. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. Keefe, Bruyette & Woods decreased their target price on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research report on Tuesday, August 5th. JMP Securities cut their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a report on Thursday, July 31st. UBS Group cut their price objective on Redwood Trust from $7.00 to $6.50 and set a "buy" rating on the stock in a report on Thursday, July 31st. Finally, JPMorgan Chase & Co. lifted their price objective on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a report on Thursday, May 1st.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors have recently modified their holdings of the business. Geode Capital Management LLC lifted its holdings in shares of Redwood Trust by 2.6% during the 2nd quarter. Geode Capital Management LLC now owns 3,176,277 shares of the real estate investment trust's stock valued at $18,773,000 after purchasing an additional 80,206 shares in the last quarter. Boston Partners lifted its holdings in shares of Redwood Trust by 2.0% during the 2nd quarter. Boston Partners now owns 2,750,890 shares of the real estate investment trust's stock valued at $16,117,000 after purchasing an additional 54,209 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Redwood Trust by 9.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,999,390 shares of the real estate investment trust's stock valued at $11,816,000 after purchasing an additional 164,387 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of 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 valued at $13,031,000 after purchasing an additional 1,200,050 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of 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 valued at $13,023,000 after purchasing an additional 321,612 shares in the last quarter. Institutional investors own 74.34% of the company's stock.

Redwood Trust Trading Up 4.3%

Shares of Redwood Trust stock traded up $0.2550 during trading on Wednesday, hitting $6.1250. 1,087,028 shares of the company were exchanged, compared to its average volume of 1,361,784. The firm has a market capitalization of $791.47 million, a P/E ratio of -9.57 and a beta of 1.31. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $8.15. The firm's fifty day moving average price is $5.88 and its 200 day moving average price is $5.93. The company has a debt-to-equity ratio of 20.00, a current ratio of 40.39 and a quick ratio of 40.39.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its 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). The company had revenue of ($38.10) million for the quarter, compared to analyst estimates of $31.00 million. Redwood Trust had a positive return on equity of 8.70% and a negative net margin of 6.93%. As a group, sell-side analysts expect 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, June 30th. Stockholders of record on Monday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 11.8%. The ex-dividend date was Monday, June 23rd. Redwood Trust's payout ratio is -112.50%.

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.