Redwood Trust (RWT) Stock Price, News & Analysis

Company Overview

Redwood Trust, Inc. (NYSE: RWT) is a real estate investment trust that specializes in mortgage investments and structured finance solutions. Headquartered in Mill Valley, California, the company focuses on sourcing, underwriting and managing a diversified portfolio of residential mortgage assets, including agency mortgage-backed securities and whole loans. Redwood Trust’s investments are primarily centered on U.S.-originated mortgage loans guaranteed by government-sponsored entities such as Fannie Mae and Freddie Mac, alongside non‐agency and structured credit instruments.

The firm operates through two main business segments: the Agency segment, which acquires and securitizes residential mortgage loans into specified pools, and the Non-Agency segment, which includes multi-family and commercial real estate finance. Through Redwood Asset Management, the company offers comprehensive asset management services to institutional investors seeking exposure to mortgage-backed securities and mortgage whole loans. These services encompass loan acquisition, securitization structuring, and ongoing portfolio oversight.

Founded in 1994, Redwood Trust has built a track record of innovation in the mortgage finance industry, pioneering the use of specified mortgage pools and actively managing credit risk across market cycles. The company completed its initial public offering in 2005 and has since expanded its product offerings to include multi-family lending and selective commercial mortgage-backed securities. Redwood Trust leverages deep industry relationships and proprietary underwriting models to identify attractive risk-adjusted investment opportunities.

Under the leadership of CEO Thomas W. Dooley and a seasoned executive team, Redwood Trust maintains a disciplined approach to risk management and capital allocation. The company’s governance framework includes a board of directors with extensive experience in real estate finance, banking and investment management. While predominantly focused on the U.S. housing market, Redwood Trust periodically evaluates international credit and structured finance opportunities in alignment with its strategic objectives.

Key Stats

• Today's Range: $6.08 to $6.18
• 50-Day Range: $5.39 to $6.23
• 52-Week Range: $4.68 to $8.15
• Volume: 539,359 shs
• Average Volume: 954,543 shs
• Market Capitalization: $800.04 million
• P/E Ratio: 27.32
• Dividend Yield: 11.98%
• Price Target: $7.44
• Consensus Rating: Moderate Buy

Redwood Trust Stock Analysis - MarketRank™

Redwood Trust scored higher than 82% of companies evaluated by MarketBeat, and ranked 262nd out of 907 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Redwood Trust has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on 4 buy ratings, 4 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Redwood Trust has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 15.38%

Earnings Growth

Earnings for Redwood Trust are expected to grow by 15.38% in the coming year, from $0.78 to $0.90 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Redwood Trust is 27.32, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 25.65.

Price to Earnings Ratio vs. Sector

The P/E ratio of Redwood Trust is 27.32, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 20.04.

Price to Book Value per Share Ratio

Redwood Trust has a P/B Ratio of 0.71. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.17% of the float of Redwood Trust has been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Redwood Trust has recently increased by 0.99%, indicating that investor sentiment is decreasing.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Redwood Trust is a leading dividend payer. It pays a dividend yield of 11.76%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Redwood Trust has only been increasing its dividend for 1 years.

Dividend Coverage

The dividend payout ratio of Redwood Trust is 327.27%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Redwood Trust will have a dividend payout ratio of 80.00% in the coming year. This indicates that Redwood Trust may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.17% of the float of Redwood Trust has been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Redwood Trust has recently increased by 0.99%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 3.1 / 5
• News Sentiment: 1.49

News Sentiment

Redwood Trust has a news sentiment score of 1.49. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.73 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Redwood Trust this week, compared to 3 articles on an average week.

Search Interest

Only 3 people have searched for RWT on MarketBeat in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

MarketBeat Follows

2 people have added Redwood Trust to their MarketBeat watchlist in the last 30 days. This is an increase of 100% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Redwood Trust insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.70% of the stock of Redwood Trust is held by insiders.

Percentage Held by Institutions

74.34% of the stock of Redwood Trust is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RWT Stock Analysis - Frequently Asked Questions

How have RWT shares performed this year?

Redwood Trust's stock was trading at $6.53 at the beginning of the year. Since then, RWT stock has decreased by 8.0% and is now trading at $6.01.

How were Redwood Trust's earnings last quarter?

Redwood Trust, Inc. (NYSE:RWT) issued its quarterly earnings data on Wednesday, April, 30th. The real estate investment trust reported $0.14 earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by $0.03. The real estate investment trust had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. Redwood Trust had a trailing twelve-month return on equity of 7.82% and a net margin of 3.93%.
Read the conference call transcript.

How do I buy shares of Redwood Trust?

Shares of RWT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Redwood Trust own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Redwood Trust investors own include Rithm Capital (RITM), Meta Platforms (META), NVIDIA (NVDA), Energy Transfer (ET), Verizon Communications (VZ), Annaly Capital Management (NLY) and AT&T (T).

Company Calendar

• Last Earnings: 4/30/2025
• Record date for 6/30 Dividend: 6/23/2025
• Ex-Dividend for 6/30 Dividend: 6/23/2025
• Dividend Payable: 6/30/2025
• Today: 7/05/2025
• Next Earnings (Estimated): 7/30/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: REIT - MTGE TRUST
• Sub-Industry: Mortgage REITs
• Current Symbol: NYSE:RWT
• CIK: 930236
• Web: www.redwoodtrust.com
• Phone: (415) 389-7373
• Fax: 415-381-1773
• Employees: 300
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $7.44
• High Stock Price Target: $9.50
• Low Stock Price Target: $6.00
• Potential Upside/Downside: +23.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 9 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.22
• Trailing P/E Ratio: 27.32
• Forward P/E Ratio: 7.71
• P/E Growth: N/A
• Net Income: $54 million
• Net Margins: 3.93%
• Pretax Margin: 6.37%
• Return on Equity: 7.82%
• Return on Assets: 0.49%

Debt

• Debt-to-Equity Ratio: 16.32
• Current Ratio: 39.35
• Quick Ratio: 39.35

Sales & Book Value

• Annual Sales: $945.16 million
• Price / Sales: 0.85
• Cash Flow: $0.77 per share
• Price / Cash Flow: 7.76
• Book Value: $8.46 per share
• Price / Book: 0.71

Miscellaneous

• Outstanding Shares: 133,120,000
• Free Float: 129,524,000
• Market Cap: $800.05 million
• Optionable: Optionable
• Beta: 1.30