Redwood Trust, Inc. Plans Quarterly Dividend of $0.18 (NYSE:RWT)

Key Points

• Redwood Trust, Inc. has announced a quarterly dividend of $0.18 per share, payable on September 30th to investors recorded on September 23rd, reflecting an annual yield of 11.6%.
• The company reported a loss in revenue and missed earnings expectations, posting an EPS of $0.18 for the last quarter, below the consensus estimate of $0.19.
• Analysts have mixed ratings on Redwood Trust, with a consensus rating of "Moderate Buy" and an average price target of $7.25, as some firms downgraded their ratings while others set new price targets.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) declared a quarterly dividend on Thursday, September 11th, RTT News reports. Investors of record on Tuesday, September 23rd will be paid a dividend of 0.18 per share by the real estate investment trust on Tuesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 11.6%.

Redwood Trust has a payout ratio of 86.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect Redwood Trust to earn $0.90 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 80.0%.

Redwood Trust Stock Up 0.1%

NYSE:RWT traded up $0.01 during trading hours on Thursday, reaching $6.21. The company's stock had a trading volume of 982,261 shares, compared to its average volume of 1,003,123. The company has a market capitalization of $801.81 million, a P/E ratio of -9.70 and a beta of 1.37. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $8.15. The company has a debt-to-equity ratio of 20.00, a quick ratio of 40.39 and a current ratio of 40.39. The stock has a 50 day moving average price of $5.98 and a two-hundred day moving average price of $5.90.

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 EPS for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The business had revenue of ($38.10) million during the quarter, compared to the consensus estimate of $31.00 million. Redwood Trust had a positive return on equity of 8.70% and a negative net margin of 6.93%. Equities analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on RWT shares. Wall Street Zen downgraded shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. UBS Group lifted their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. JMP Securities cut their price target on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a report on Thursday, July 31st. Finally, Keefe, Bruyette & Woods cut their price target on shares of Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a report on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Redwood Trust has a consensus rating of "Moderate Buy" and an average price target of $7.25.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.