Redwood Trust (NYSE:RWT) Given Sell (D) Rating at Weiss Ratings

Key Points

• Redwood Trust was given a "sell (d)" rating by Weiss Ratings, reflecting ongoing concerns about the company's performance in the market.
• Analysts have mixed opinions on Redwood Trust, with some reducing price targets while others, like BTIG Research, have maintained a "buy" rating with a target of $8.50.
• The company's stock is currently valued at $5.79 with a consensus target price of $6.88, indicating potential for moderate increase despite recent underperformance in earnings.

Redwood Trust (NYSE:RWT - Get Free Report)'s stock had its "sell (d)" rating reiterated by research analysts at Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

A number of other equities analysts have also weighed in on the company. JMP Securities dropped their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research note on Thursday, July 31st. UBS Group increased their price target on Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research note on Wednesday, September 3rd. Keefe, Bruyette & Woods dropped their price target on Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research note on Tuesday, August 5th. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 2nd. Finally, BTIG Research reissued a "buy" rating and set a $8.50 price target on shares of Redwood Trust in a research note on Friday, September 26th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $6.88.

Redwood Trust Stock Performance

NYSE RWT opened at $5.79 on Wednesday. The firm has a market cap of $748.18 million, a price-to-earnings ratio of -9.05 and a beta of 1.43. The company has a quick ratio of 40.39, a current ratio of 40.39 and a debt-to-equity ratio of 20.00. The business has a 50-day moving average price of $5.94 and a 200-day moving average price of $5.83. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $7.90.

Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share 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%. As a group, equities research analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Institutional Investors Weigh In On Redwood Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RWT. CWM LLC raised its position in Redwood Trust by 270.5% during the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust's stock valued at $36,000 after purchasing an additional 4,503 shares during the period. Quantbot Technologies LP purchased a new stake in Redwood Trust during the first quarter valued at approximately $37,000. Russell Investments Group Ltd. raised its holdings in shares of Redwood Trust by 331.8% in the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust's stock worth $47,000 after buying an additional 6,082 shares during the period. AlphaQuest LLC raised its holdings in shares of Redwood Trust by 165.5% in the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock worth $52,000 after buying an additional 5,354 shares during the period. Finally, Tower Research Capital LLC TRC raised its holdings in shares of Redwood Trust by 136.9% in the second quarter. Tower Research Capital LLC TRC now owns 10,823 shares of the real estate investment trust's stock worth $64,000 after buying an additional 6,255 shares during the period. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

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.

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