Redwood Trust (NYSE:RWT) Price Target Lowered to $5.75 at Keefe, Bruyette & Woods

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 - Get Free Report) had its price objective lowered by Keefe, Bruyette & Woods from $6.50 to $5.75 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a "market perform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 0.44% from the stock's current price.

Several other analysts also recently issued reports on the stock. JPMorgan Chase & Co. boosted their target price on shares of Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Wall Street Zen downgraded Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Saturday. Jones Trading reissued a "buy" rating and set a $7.00 price target on shares of Redwood Trust in a research report on Friday, May 2nd. UBS Group reduced their price objective on Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a research note on Thursday, July 31st. Finally, JMP Securities lowered their target price on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a research note on Thursday, July 31st. One analyst has rated the stock with a sell rating, four have issued a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $7.22.

Redwood Trust Price Performance

NYSE RWT opened at $5.73 on Tuesday. 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. The company has a market cap of $762.11 million, a PE ratio of -8.95 and a beta of 1.31. The stock's 50-day moving average price is $5.80 and its two-hundred day moving average price is $5.99.

Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The firm had revenue of ($38.10) million for the quarter, compared to analyst estimates of $31.00 million. Redwood Trust had a negative net margin of 9.26% and a positive return on equity of 8.57%. On average, analysts predict that Redwood Trust will post 0.78 EPS for the current year.

Hedge Funds Weigh In On Redwood Trust

Hedge funds have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC lifted its stake in Redwood Trust by 14.4% in the second quarter. Nisa Investment Advisors LLC now owns 89,960 shares of the real estate investment trust's stock valued at $532,000 after acquiring an additional 11,353 shares during the last quarter. Prudent Man Advisors LLC raised its holdings in shares of Redwood Trust by 26.7% during the 2nd quarter. Prudent Man Advisors LLC now owns 28,369 shares of the real estate investment trust's stock valued at $168,000 after purchasing an additional 5,987 shares in the last quarter. Brighton Jones LLC boosted its holdings in Redwood Trust by 50.4% in the second quarter. Brighton Jones LLC now owns 112,617 shares of the real estate investment trust's stock worth $666,000 after purchasing an additional 37,760 shares in the last quarter. CWM LLC increased 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 worth $36,000 after buying an additional 4,503 shares during the last quarter. Finally, Concurrent Investment Advisors LLC raised its holdings in Redwood Trust by 4.7% during the second quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust's stock valued at $245,000 after buying an additional 1,866 shares in the last quarter. Institutional investors and hedge funds 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.

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