Redwood Trust (NYSE:RWT) Earns Buy Rating from JonesTrading

Key Points

• JonesTrading reiterated a Buy rating on Redwood Trust with a $6.25 price target (about an 11.7% upside), while the analyst consensus remains a Hold with an average target of $6.82 after five Buys, four Holds and one Sell.
• Operationally Redwood reported a record $8.5 billion of mortgage banking production for Q1 and announced a joint venture with Castlelake to acquire up to $8 billion of prime jumbo loans, both intended to boost scale and fee income.
• Despite production gains, Q1 showed a GAAP net loss of $(0.07) per share and a slight EPS miss, contributing to analyst caution and a roughly 2.7% share-price pullback (stock opened at $5.60).

Redwood Trust (NYSE:RWT - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at JonesTrading in a report released on Thursday,Benzinga reports. They presently have a $6.25 price objective on the real estate investment trust's stock. JonesTrading's price objective indicates a potential upside of 11.71% from the company's previous close.

Other research analysts have also issued research reports about the stock. Citigroup restated a "market perform" rating on shares of Redwood Trust in a research note on Wednesday, February 18th. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a research note on Thursday, January 22nd. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a "neutral" rating to an "overweight" rating and set a $6.00 price target on the stock in a research note on Friday, January 23rd. Piper Sandler dropped their price target on shares of Redwood Trust from $6.50 to $6.00 and set a "neutral" rating on the stock in a research note on Thursday, April 2nd. Finally, Wall Street Zen downgraded shares of Redwood Trust from a "hold" rating to a "sell" rating in a report on Monday, April 6th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $6.82.

Redwood Trust Stock Down 2.7%

Redwood Trust stock opened at $5.60 on Thursday. The firm has a market cap of $699.35 million, a PE ratio of -9.17 and a beta of 1.52. The company has a debt-to-equity ratio of 24.34, a quick ratio of 55.15 and a current ratio of 55.15. The firm's 50 day moving average price is $5.82 and its two-hundred day moving average price is $5.67. Redwood Trust has a twelve month low of $5.00 and a twelve month high of $6.97.

Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. The company had revenue of $140.33 million during the quarter, compared to analyst estimates of $24.88 million. On average, research analysts predict that Redwood Trust will post 1.2 EPS for the current fiscal year.

Institutional Trading of Redwood Trust

Large investors have recently modified their holdings of the company. Counterpoint Mutual Funds LLC acquired a new stake in Redwood Trust during the first quarter worth about $876,000. Inspire Investing LLC boosted its position in shares of Redwood Trust by 9.8% during the 1st quarter. Inspire Investing LLC now owns 92,705 shares of the real estate investment trust's stock valued at $520,000 after acquiring an additional 8,290 shares in the last quarter. Janney Montgomery Scott LLC boosted its position in shares of Redwood Trust by 18.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 15,113 shares of the real estate investment trust's stock valued at $85,000 after acquiring an additional 2,363 shares in the last quarter. Louisiana State Employees Retirement System acquired a new stake in shares of Redwood Trust during the 1st quarter valued at about $310,000. Finally, SG Americas Securities LLC boosted its position in shares of Redwood Trust by 77.8% during the 1st quarter. SG Americas Securities LLC now owns 27,213 shares of the real estate investment trust's stock valued at $153,000 after acquiring an additional 11,911 shares in the last quarter. 74.34% of the stock is owned by institutional investors.

Trending Headlines about Redwood Trust

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Record mortgage production — Redwood reported record mortgage banking production of $8.5 billion for Q1, showing strong originations and fee-generation capacity that supports future earnings potential. Redwood Trust Reports First Quarter Financial Results; Mortgage Banking Production Reaches a Record $8.5 Billion
• Positive Sentiment: Large strategic JV — Redwood and Castlelake announced a joint venture to acquire up to $8 billion of prime jumbo mortgage loans, which should boost scale, fee income and balance-sheet deployment over coming quarters. This reduces execution risk for growth plans. Castlelake and Redwood Trust Announce Strategic Joint Venture to Purchase up to $8 Billion of Prime Jumbo Mortgage Loans
• Neutral Sentiment: Call materials and transcripts available — Management provided an earnings presentation and call transcript outlining drivers (production, hedging, capital plans). Useful for assessing sustainability of production and margin outlook but not a new catalyst by itself. Redwood Trust, Inc. (RWT) Q1 2026 Earnings Call Transcript
• Negative Sentiment: GAAP net loss — On a consolidated basis Redwood reported a GAAP net loss of $(0.07) per share for Q1, which weighs on near-term earnings perception and dividend coverage narratives. Redwood Trust Reports First Quarter Financial Results; Mortgage Banking Production Reaches a Record $8.5 Billion
• Negative Sentiment: Mixed/soft reported economics vs. some expectations — Revenue came in below some estimates and reported EPS figures were reported as slightly below or only in-line depending on the metric (GAAP vs. non‑GAAP EAD), prompting analyst caution and the share-price pullback. Redwood Trust Q1 earnings snapshot and call materials

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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