Keefe, Bruyette & Woods Issues Pessimistic Forecast for Redwood Trust (NYSE:RWT) Stock Price

Key Points

• Redwood Trust's price target has been reduced from $6.50 to $5.75 by Keefe, Bruyette & Woods, with a "market perform" rating.
• Analysts have a consensus rating of "Hold" on Redwood Trust, with a consensus price target of $7.22, while varied ratings include one "sell" and several "buy" and "hold" recommendations.
• The company reported earnings of $0.18 per share, missing analyst expectations by $0.01, with revenue of -$38.10 million for the quarter.

Redwood Trust (NYSE:RWT - Free Report) had its price target lowered by Keefe, Bruyette & Woods from $6.50 to $5.75 in a report published on Tuesday,Benzinga reports. Keefe, Bruyette & Woods currently has a market perform rating on the real estate investment trust's stock.

A number of other equities research analysts have also recently commented on RWT. UBS Group reduced their target price on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a research report on Thursday, July 31st. JMP Securities reduced their target price on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a research report on Thursday, July 31st. JPMorgan Chase & Co. upped their price target on Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research report on Thursday, May 1st. Wall Street Zen lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. Finally, Jones Trading restated a "buy" rating and issued a $7.00 price target on shares of Redwood Trust in a research report on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, Redwood Trust currently has an average rating of "Moderate Buy" and a consensus price target of $7.18.

Redwood Trust Stock Performance

RWT traded up $0.04 during midday trading on Tuesday, hitting $5.76. 1,770,097 shares of the company were exchanged, compared to its average volume of 1,141,108. The company's 50 day simple moving average is $5.82 and its 200 day simple moving average is $5.97. The firm has a market capitalization of $766.11 million, a price-to-earnings ratio of -8.99 and a beta of 1.31. The company has a current ratio of 39.35, a quick ratio of 39.35 and a debt-to-equity ratio of 18.74. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $8.15.

Redwood Trust (NYSE:RWT - Get Free Report) last issued 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). Redwood Trust had a positive return on equity of 8.57% and a negative net margin of 9.26%. The firm had revenue of ($38.10) million during the quarter, compared to analyst estimates of $31.00 million. As a group, sell-side analysts predict that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were given a dividend of $0.18 per share. The ex-dividend date of this dividend was Monday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.5%. Redwood Trust's dividend payout ratio (DPR) is presently -112.50%.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently added to or reduced their stakes in RWT. Quantbot Technologies LP purchased a new position in Redwood Trust in the first quarter worth approximately $37,000. CWM LLC lifted its stake in Redwood Trust by 270.5% in the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust's stock worth $36,000 after acquiring an additional 4,503 shares during the last quarter. AlphaQuest LLC lifted its stake in 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 acquiring an additional 5,354 shares during the last quarter. Carrera Capital Advisors purchased a new position in Redwood Trust in the first quarter worth approximately $65,000. Finally, XTX Topco Ltd purchased a new position in Redwood Trust in the first quarter worth approximately $65,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

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.