Redwood Trust (NYSE:RWT) Raised to "Outperform" at Keefe, Bruyette & Woods

Key Points

• Redwood Trust was upgraded by Keefe, Bruyette & Woods from “market perform” to “outperform”, though the firm lowered its price target to $6.00 from $7.00.
• The new target still implies about 25.94% upside from the previous close, and the broader analyst view remains “Moderate Buy” with a consensus price target of $6.11.
• Redwood Trust shares opened at $4.76, below the analysts’ targets, while the company’s stock has traded between $4.19 and $6.97 over the past year.

Redwood Trust (NYSE:RWT - Get Free Report) was upgraded by Keefe, Bruyette & Woods from a "market perform" rating to an "outperform" rating in a report released on Thursday,Benzinga reports. The firm presently has a $6.00 price objective on the real estate investment trust's stock, down from their previous price objective of $7.00. Keefe, Bruyette & Woods' price target indicates a potential upside of 25.94% from the company's previous close.

Several other research firms have also commented on RWT. Citizens Jmp dropped their price target on shares of Redwood Trust from $7.00 to $6.00 and set a "market outperform" rating on the stock in a research report on Wednesday. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a research report on Wednesday, June 24th. JonesTrading restated a "buy" rating and issued a $6.25 price target on shares of Redwood Trust in a research note on Thursday, April 30th. Zacks Research cut Redwood Trust from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Finally, BTIG Research lowered their price target on Redwood Trust from $8.50 to $6.00 and set a "buy" rating on the stock in a research report on Wednesday, June 17th. Six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $6.11.

Redwood Trust Price Performance

NYSE:RWT opened at $4.76 on Thursday. The company has a debt-to-equity ratio of 28.42, a current ratio of 59.63 and a quick ratio of 59.63. The firm has a market cap of $596.55 million, a price-to-earnings ratio of -6.11 and a beta of 1.37. The company has a 50 day moving average price of $5.17 and a 200-day moving average price of $5.57. Redwood Trust has a 1-year low of $4.19 and a 1-year high of $6.97.

Institutional Trading of Redwood Trust

Several institutional investors have recently modified their holdings of RWT. Clearstead Advisors LLC raised its position in shares of Redwood Trust by 192.5% during the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust's stock worth $30,000 after purchasing an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in Redwood Trust by 331.8% in the 2nd 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 last quarter. Westbourne Investments Inc. purchased a new stake in Redwood Trust during the 4th quarter worth approximately $55,000. Bank of Marin acquired a new position in shares of Redwood Trust during the fourth quarter valued at approximately $58,000. Finally, Abel Hall LLC purchased a new position in shares of Redwood Trust in the fourth quarter valued at approximately $58,000. Institutional investors and hedge funds 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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