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

Key Points

• Redwood Trust has a consensus “Moderate Buy” rating from 10 analysts, with six buy ratings, three holds, and one sell. The average 12-month price target is about $6.11.
• Recent analyst updates were mixed: BTIG and Piper Sandler cut price targets, while Keefe, Bruyette & Woods upgraded the stock to outperform even as it lowered its target to $6.00.
• The stock recently traded at $5.12, below the consensus target, and Redwood Trust paid a quarterly dividend of $0.18 per share, implying an annualized yield of 14.1%.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the ten research firms that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $6.1071.

Several analysts recently weighed in on RWT shares. BTIG Research dropped their price objective on Redwood Trust from $8.50 to $6.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. Piper Sandler dropped their target price on shares of Redwood Trust from $6.50 to $5.50 and set a "neutral" rating for the company in a report on Thursday, July 2nd. JonesTrading reaffirmed a "buy" rating and set a $6.25 price target on shares of Redwood Trust in a report on Thursday, April 30th. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a research report on Wednesday, June 24th. Finally, Keefe, Bruyette & Woods raised shares of Redwood Trust from a "market perform" rating to an "outperform" rating and dropped their price objective for the company from $7.00 to $6.00 in a research note on Thursday.

Redwood Trust Price Performance

NYSE RWT traded up $0.04 on Friday, hitting $5.12. 3,203,559 shares of the company's stock were exchanged, compared to its average volume of 4,347,620. The stock has a 50-day moving average of $5.14 and a 200-day moving average of $5.56. The stock has a market cap of $640.50 million, a price-to-earnings ratio of -6.56 and a beta of 1.37. Redwood Trust has a 52 week low of $4.19 and a 52 week high of $6.97. The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42.

Redwood Trust Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 14.1%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust's payout ratio is presently -92.31%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RWT. Evanson Financial LLC acquired a new stake in shares of Redwood Trust during the 2nd quarter valued at $66,000. PVG Asset Management Corp acquired a new position in Redwood Trust in the 2nd quarter worth about $592,000. Empowered Funds LLC acquired a new position in Redwood Trust in the 1st quarter worth about $255,000. Optiver Holding B.V. raised its position in Redwood Trust by 2,034.5% in the first quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust's stock valued at $60,000 after purchasing an additional 10,274 shares during the last quarter. Finally, Bank of America Corp DE raised its position in Redwood Trust by 66.4% in the first quarter. Bank of America Corp DE now owns 395,286 shares of the real estate investment trust's stock valued at $2,218,000 after purchasing an additional 157,795 shares during the last quarter. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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