Redwood Trust, Inc. (NYSE:RWT) Receives Average Rating of "Moderate Buy" from Brokerages

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 earned a consensus recommendation of "Moderate Buy" from the nine brokerages that are covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $7.39.

A number of equities research analysts have recently weighed in on the stock. UBS Group lifted their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research report on Monday, May 5th. 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. Wall Street Zen raised Redwood Trust from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. JMP Securities dropped their price target on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating for the company in a research note on Thursday, April 17th. Finally, Keefe, Bruyette & Woods cut shares of Redwood Trust from an "outperform" rating to a "market perform" rating and cut their price objective for the stock from $7.00 to $6.50 in a research report on Thursday, July 10th.

Institutional Trading of Redwood Trust

A number of hedge funds have recently added to or reduced their stakes in the stock. Quantbot Technologies LP acquired a new stake in shares of Redwood Trust during the 1st quarter valued at $37,000. CWM LLC raised its position 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 valued at $36,000 after purchasing an additional 4,503 shares during the last quarter. AlphaQuest LLC boosted its stake in shares of 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 in the last quarter. Carrera Capital Advisors acquired a new stake in shares of Redwood Trust during the first quarter valued at about $65,000. Finally, XTX Topco Ltd bought a new stake in shares of Redwood Trust during the first quarter worth about $65,000. Institutional investors and hedge funds own 74.34% of the company's stock.

Redwood Trust Stock Down 0.2%

RWT opened at $6.04 on Friday. The stock has a fifty day moving average of $5.79 and a 200-day moving average of $6.01. The company has a market capitalization of $803.38 million, a P/E ratio of 27.43 and a beta of 1.30. Redwood Trust has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The company has a debt-to-equity ratio of 16.32, a quick ratio of 39.35 and a current ratio of 39.35.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings data 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). The business had revenue of $73.80 million during the quarter, compared to analyst estimates of $26.55 million. Redwood Trust had a return on equity of 7.82% and a net margin of 3.93%. On average, equities analysts expect that Redwood Trust will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 11.93%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's payout ratio is 327.27%.

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.

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