Redwood Trust, Inc. (NYSE:RWT) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Redwood Trust, Inc. has received a consensus rating of "Hold" from seven research firms, with one sell recommendation, two holds, and four buys.
• The company's recent quarterly earnings report showed a loss of $38.10 million in revenue, missing analysts' expectations, and an EPS of $0.18, which was lower than the consensus estimate of $0.19.
• Redwood Trust recently declared a quarterly dividend of $0.18, leading to an annualized dividend yield of 12.4%, despite a negative payout ratio of -112.50%.

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have received a consensus recommendation of "Hold" from the seven research firms that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have given a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $6.8750.

RWT has been the subject of a number of research reports. Keefe, Bruyette & Woods cut their target price on shares of 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. UBS Group boosted their price objective on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. BTIG Research reiterated a "buy" rating and set a $8.50 price objective on shares of Redwood Trust in a research note on Friday, September 26th. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a research report on Wednesday. Finally, Wall Street Zen cut Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently made changes to their positions in the stock. Quantbot Technologies LP purchased a new stake in Redwood Trust in the 1st quarter valued at $37,000. CWM LLC grew its holdings in Redwood Trust by 270.5% in the 2nd quarter. CWM LLC now owns 6,168 shares of the real estate investment trust's stock valued at $36,000 after buying an additional 4,503 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in Redwood Trust by 331.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust's stock valued at $47,000 after buying an additional 6,082 shares in the last quarter. AlphaQuest LLC grew its holdings in shares of Redwood Trust by 165.5% in 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 purchased a new stake in shares of Redwood Trust in the first quarter valued at about $65,000. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Redwood Trust Stock Up 0.7%

Redwood Trust stock opened at $5.79 on Thursday. The stock has a market capitalization of $748.18 million, a PE ratio of -9.05 and a beta of 1.43. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $7.90. The business has a 50 day simple moving average of $5.94 and a 200-day simple moving average of $5.83. 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 issued its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). The company had revenue of ($38.10) million during the quarter, compared to analysts' expectations of $31.00 million. Redwood Trust had a positive return on equity of 8.70% and a negative net margin of 6.93%. On average, analysts anticipate that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 23rd were given a $0.18 dividend. The ex-dividend date was Tuesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.4%. Redwood Trust's dividend 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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