Analysts Set Redwood Trust, Inc. (NYSE:RWT) Price Target at $7.39

Key Points

• Redwood Trust, Inc. has received a consensus rating of “Moderate Buy” from nine brokerages, with an average target price set at $7.39.
• The company reported $0.14 earnings per share for the last quarter, falling short of the estimated $0.17 by $0.03, while generating revenue of $73.80 million.
• Redwood Trust recently announced a quarterly dividend of $0.18 per share, resulting in an annualized yield of 11.93% for shareholders.

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 currently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $7.39.

A number of analysts have recently commented on the company. JMP Securities cut their price target on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating on the stock in a report on Thursday, April 17th. JPMorgan Chase & Co. upped their target price on Redwood Trust from $5.50 to $6.00 and gave the stock a "neutral" rating in a research note on Thursday, May 1st. 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. UBS Group increased their price target on Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research note on Monday, May 5th. Finally, Keefe, Bruyette & Woods downgraded Redwood Trust from an "outperform" rating to a "market perform" rating and decreased their price objective for the company from $7.00 to $6.50 in a report on Thursday, July 10th.

Redwood Trust Stock Performance

NYSE:RWT traded up $0.05 during mid-day trading on Friday, hitting $6.06. 523,523 shares of the company's stock traded hands, compared to its average volume of 755,689. The firm has a 50 day moving average of $5.80 and a two-hundred day moving average of $6.01. The company has a current ratio of 39.35, a quick ratio of 39.35 and a debt-to-equity ratio of 16.32. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $8.15. The firm has a market capitalization of $806.04 million, a price-to-earnings ratio of 27.52 and a beta of 1.30.

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 analysts' consensus estimates of $0.17 by ($0.03). The business had revenue of $73.80 million for the quarter, compared to analyst estimates of $26.55 million. Redwood Trust had a net margin of 3.93% and a return on equity of 7.82%. On average, equities analysts forecast that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were issued a $0.18 dividend. The ex-dividend date was Monday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.89%. Redwood Trust's dividend payout ratio (DPR) is presently 327.27%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. CWM LLC lifted its stake in Redwood Trust by 270.5% in the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust's stock worth $36,000 after purchasing an additional 4,503 shares during the last quarter. LaSalle St. Investment Advisors LLC purchased a new stake in shares of Redwood Trust during the fourth quarter valued at approximately $37,000. Quantbot Technologies LP bought a new position in Redwood Trust during the first quarter valued at approximately $37,000. AlphaQuest LLC lifted its position in Redwood Trust by 165.5% during the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock valued at $52,000 after purchasing an additional 5,354 shares during the period. Finally, Carrera Capital Advisors bought a new position in Redwood Trust in the first quarter worth approximately $65,000. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

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.