Redwood Trust (NYSE:RWT) Given "Buy" Rating at BTIG Research

Key Points

• Redwood Trust's stock has been restated with a "buy" rating by BTIG Research, with a target price of $8.50, indicating a potential upside of 46.68% from its current price.
• Institutional investors have shown strong interest in Redwood Trust, with significant stake increases from LSV Asset Management and Nomura Holdings, contributing to 74.34% institutional ownership of the company.
• The company's recent earnings report showed a $0.18 EPS, falling short of estimates, along with a negative net margin of 6.93%.

Redwood Trust (NYSE:RWT - Get Free Report)'s stock had its "buy" rating restated by investment analysts at BTIG Research in a report issued on Friday,Benzinga reports. They presently have a $8.50 target price on the real estate investment trust's stock. BTIG Research's target price would suggest a potential upside of 46.68% from the stock's current price.

A number of other research firms also recently weighed in on RWT. UBS Group upped their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research report on Wednesday, September 3rd. JMP Securities cut their price objective on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 31st. Wall Street Zen downgraded shares of Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Redwood Trust from $6.50 to $5.75 and set a "market perform" rating on the stock in a research report on Tuesday, August 5th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $6.88.

Redwood Trust Stock Down 1.1%

Shares of NYSE RWT opened at $5.80 on Friday. The company has a quick ratio of 40.39, a current ratio of 40.39 and a debt-to-equity ratio of 20.00. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $7.90. The firm's fifty day moving average is $5.98 and its 200 day moving average is $5.87. The company has a market cap of $748.83 million, a price-to-earnings ratio of -9.05 and a beta of 1.37.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). The firm had revenue of ($38.10) million during the quarter, compared to analysts' expectations of $31.00 million. Redwood Trust had a positive return on equity of 8.70% and a negative net margin of 6.93%. On average, equities research analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently bought and sold shares of the company. LSV Asset Management raised its stake in shares of Redwood Trust by 58.9% during the 1st quarter. LSV Asset Management now owns 1,772,345 shares of the real estate investment trust's stock worth $10,758,000 after buying an additional 657,141 shares during the period. Jane Street Group LLC acquired a new position in shares of Redwood Trust during the 1st quarter worth approximately $2,018,000. Nuveen LLC acquired a new position in shares of Redwood Trust during the 1st quarter worth approximately $1,983,000. Ceredex Value Advisors LLC raised its stake in shares of Redwood Trust by 24.4% during the 1st quarter. Ceredex Value Advisors LLC now owns 1,479,950 shares of the real estate investment trust's stock worth $8,983,000 after buying an additional 289,900 shares during the period. Finally, Nomura Holdings Inc. raised its stake in shares of Redwood Trust by 220.3% during the 2nd quarter. Nomura Holdings Inc. now owns 120,316 shares of the real estate investment trust's stock worth $711,000 after buying an additional 220,316 shares during the period. Hedge funds and other institutional investors own 74.34% of the company's stock.

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.