Redwood Trust (NYSE:RWT) Posts Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Redwood Trust reported quarterly EPS of $0.15, missing the consensus estimate of $0.23 by $0.08. The company posted a 14.53% return on equity but a negative 7.23% net margin.
• The REIT declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and a high 14.6% yield.
• Analysts have generally lowered their price targets, with the consensus rating at “Hold” and an average target of $6.11; shares opened at $4.94 and rose 0.3%.

Redwood Trust (NYSE:RWT - Get Free Report) released its earnings results on Tuesday. The real estate investment trust reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.08), FiscalAI reports. Redwood Trust had a positive return on equity of 14.53% and a negative net margin of 7.23%.

Redwood Trust Trading Up 0.3%

Shares of Redwood Trust stock opened at $4.94 on Tuesday. Redwood Trust has a twelve month low of $4.19 and a twelve month high of $6.97. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 28.42. The business has a 50-day moving average price of $5.07 and a 200-day moving average price of $5.52. The firm has a market cap of $618.21 million, a price-to-earnings ratio of -6.33 and a beta of 1.37.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 23rd were given a dividend of $0.18 per share. The ex-dividend date was Tuesday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 14.6%. Redwood Trust's dividend payout ratio (DPR) is presently -92.31%.

Analysts Set New Price Targets

Several equities analysts have weighed in on RWT shares. JPMorgan Chase & Co. lowered their price target on shares of Redwood Trust from $6.50 to $6.00 and set an "overweight" rating on the stock in a report on Friday, July 17th. Citizens Jmp lowered their target price on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a research note on Wednesday, July 8th. Zacks Research lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 21st. Wall Street Zen raised Redwood Trust from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Finally, BTIG Research dropped their price objective 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. 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. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $6.11.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors have recently added to or reduced their stakes in the company. Vident Advisory LLC boosted its position in shares of Redwood Trust by 4.7% during the 4th quarter. Vident Advisory LLC now owns 39,606 shares of the real estate investment trust's stock valued at $219,000 after acquiring an additional 1,773 shares during the last quarter. Inceptionr LLC lifted its position in Redwood Trust by 10.7% during the third quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust's stock valued at $153,000 after purchasing an additional 2,560 shares during the last quarter. XTX Topco Ltd grew its stake in shares of Redwood Trust by 35.4% in the 2nd quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust's stock worth $86,000 after buying an additional 3,795 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Redwood Trust by 17.9% in the 3rd quarter. Envestnet Asset Management Inc. now owns 26,720 shares of the real estate investment trust's stock worth $155,000 after buying an additional 4,052 shares in the last quarter. Finally, BNP Paribas Financial Markets increased its holdings in shares of Redwood Trust by 53.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 13,506 shares of the real estate investment trust's stock worth $80,000 after buying an additional 4,692 shares during the last quarter. Hedge funds and other institutional investors own 74.34% of the company's stock.

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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