Redwood Trust (NYSE:RWT) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Redwood Trust (NYSE:RWT) from a “hold” to a “strong sell,” making the latest analyst action more bearish on the stock.
• Wall Street views remain mixed: Redwood Trust now has six Buy ratings, two Hold ratings, and two Sell ratings, with a consensus rating of Hold and an average target price of $6.11.
• The stock was trading around $5.08, near its 50-day moving average, while the company reported a market cap of about $636.7 million and a highly leveraged balance sheet with a debt-to-equity ratio of 28.42.

Redwood Trust (NYSE:RWT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday,Zacks.com reports.

Other research analysts have also issued reports about the company. JPMorgan Chase & Co. dropped their target price on Redwood Trust from $6.50 to $6.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a report on Wednesday, June 24th. BTIG Research lowered their price target on Redwood Trust from $8.50 to $6.00 and set a "buy" rating for the company in a research note on Wednesday, June 17th. Citizens Jmp dropped their price objective on Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a report on Wednesday, July 8th. Finally, Keefe, Bruyette & Woods upgraded Redwood Trust from a "market perform" rating to an "outperform" rating and dropped their price objective for the stock from $7.00 to $6.00 in a report on Thursday, July 9th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Redwood Trust currently has a consensus rating of "Hold" and an average target price of $6.11.

Redwood Trust Trading Up 1.1%

Redwood Trust stock opened at $5.08 on Tuesday. The company's fifty day simple moving average is $5.08 and its 200-day simple moving average is $5.54. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 28.42. Redwood Trust has a 12 month low of $4.19 and a 12 month high of $6.97. The stock has a market cap of $636.74 million, a P/E ratio of -6.52 and a beta of 1.37.

Institutional Trading of Redwood Trust

A number of institutional investors and hedge funds have recently made changes to their positions in RWT. Wellington Management Group LLP increased its holdings in shares of Redwood Trust by 0.5% during the 4th quarter. Wellington Management Group LLP now owns 15,101,012 shares of the real estate investment trust's stock valued at $83,509,000 after acquiring an additional 80,529 shares during the last quarter. UBS Group AG lifted its holdings in Redwood Trust by 521.1% in the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust's stock worth $21,430,000 after purchasing an additional 3,251,302 shares during the last quarter. Invesco Ltd. lifted its holdings in Redwood Trust by 25.4% in the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust's stock worth $14,107,000 after purchasing an additional 516,630 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Redwood Trust by 15.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,169,992 shares of the real estate investment trust's stock worth $12,000,000 after purchasing an additional 282,800 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Redwood Trust by 7.5% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,148,393 shares of the real estate investment trust's stock worth $12,439,000 after purchasing an additional 149,003 shares during the period. Institutional investors and hedge funds own 74.34% of the company's stock.

About Redwood Trust

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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