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

Key Points

• Redwood Trust, Inc. has received a consensus recommendation of "Moderate Buy" from seven brokerages, with an average 12-month price target of $7.25.
• Recent changes in analyst ratings include Wall Street Zen downgrading the stock to "strong sell" and JPM Securities lowering their price objective from $7.50 to $7.00.
• The company has declared a quarterly dividend of $0.18, which translates to an annualized yield of 11.5%, despite a payout ratio of -112.50%.

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the seven ratings firms that are currently covering the firm, MarketBeat reports. Three analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $7.25.

A number of equities research analysts have weighed in on the company. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. JMP Securities lowered their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research note on Thursday, July 31st. Keefe, Bruyette & Woods lowered their price objective on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research note on Tuesday, August 5th. Finally, UBS Group raised their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research note on Wednesday, September 3rd.

Institutional Investors Weigh In On Redwood Trust

A number of institutional investors have recently made changes to their positions in the company. Cambridge Investment Research Advisors Inc. increased its holdings in shares of Redwood Trust by 3.1% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust's stock valued at $360,000 after acquiring an additional 1,767 shares during the last quarter. Concurrent Investment Advisors LLC raised its stake in Redwood Trust by 4.7% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust's stock valued at $245,000 after acquiring an additional 1,866 shares in the last quarter. Intech Investment Management LLC raised its stake in Redwood Trust by 1.4% during the 2nd quarter. Intech Investment Management LLC now owns 151,270 shares of the real estate investment trust's stock valued at $894,000 after acquiring an additional 2,033 shares in the last quarter. New York State Teachers Retirement System raised its stake in Redwood Trust by 1.5% during the 1st quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust's stock valued at $925,000 after acquiring an additional 2,326 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in Redwood Trust by 7.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 34,177 shares of the real estate investment trust's stock valued at $202,000 after acquiring an additional 2,464 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Price Performance

Shares of NYSE RWT opened at $6.24 on Friday. Redwood Trust has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The business has a 50 day moving average price of $5.99 and a two-hundred day moving average price of $5.90. The company has a quick ratio of 40.39, a current ratio of 40.39 and a debt-to-equity ratio of 20.00. The firm has a market cap of $806.35 million, a PE ratio of -9.75 and a beta of 1.37.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $31.00 million. Sell-side analysts expect that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.5%. The ex-dividend date is Tuesday, September 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.

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