Redwood Trust, Inc. (NYSE:RWT) Receives $7.44 Consensus Price Target from Analysts

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the nine ratings firms that are currently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation, four have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $7.44.

RWT has been the topic of a number of research reports. Wall Street Zen upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Keefe, Bruyette & Woods dropped their target price on Redwood Trust from $7.75 to $7.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 6th. Jones Trading restated a "buy" rating and set a $7.00 price target on shares of Redwood Trust in a report on Friday, May 2nd. UBS Group upped 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. Finally, JPMorgan Chase & Co. upped their price target on shares of Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a report on Thursday, May 1st.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. LaSalle St. Investment Advisors LLC acquired a new position in shares of Redwood Trust in the 4th quarter valued at $37,000. Quantbot Technologies LP bought a new position in Redwood Trust during the first quarter worth about $37,000. AlphaQuest LLC boosted its holdings 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 in the last quarter. Carrera Capital Advisors acquired a new stake in Redwood Trust during the first quarter valued at approximately $65,000. Finally, XTX Topco Ltd bought a new stake in shares of Redwood Trust in the 1st quarter valued at approximately $65,000. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Price Performance

Shares of RWT traded down $0.13 during midday trading on Tuesday, reaching $6.01. The stock had a trading volume of 539,359 shares, compared to its average volume of 953,095. The company has a debt-to-equity ratio of 16.32, a current ratio of 39.35 and a quick ratio of 39.35. The company has a market capitalization of $800.05 million, a P/E ratio of 27.32 and a beta of 1.30. The firm's 50 day moving average price is $5.77 and its 200-day moving average price is $6.08. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $8.15.

Redwood Trust (NYSE:RWT - Get Free Report) last released its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.03). Redwood Trust had a return on equity of 7.82% and a net margin of 3.93%. The firm had revenue of $73.80 million for the quarter, compared to analyst estimates of $26.55 million. On average, analysts forecast that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company 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 11.98%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's payout ratio is presently 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.