Redwood Trust (RWT) Stock Price, News & Analysis

Company Overview

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on housing credit and residential real estate finance. Organized as a real estate investment trust, the company invests in and manages residential credit assets, including mortgage loans and mortgage-related securities, with an emphasis on assets that are not typically financed through traditional government-sponsored mortgage programs.

Redwood operates through several business platforms. Its residential mortgage banking activities include acquiring and financing prime jumbo loans and other residential mortgages, which may be held for investment or placed into private-label securitizations. The company also provides financing to real estate investors and operators through business-purpose lending, including loans secured by single-family rental properties, transitional residential assets and other residential real estate.

Founded in 1994 and headquartered in Mill Valley, California, Redwood Trust primarily serves the U.S. residential housing and real estate markets. Through its investment and lending platforms, the company works with mortgage originators, real estate investors, property owners and institutional capital partners. Its activities are designed to provide liquidity to segments of the housing finance market beyond the scope of conventional agency mortgage lending.

Key Stats

• Today's Range: $3.42 to $3.53
• 50-Day Range: $3.45 to $4.84
• 52-Week Range: $3.22 to $6.97
• Volume: 2.75 million shs
• Average Volume: 8.72 million shs
• Market Capitalization: $432.73 million
• P/E Ratio: N/A
• Dividend Yield: 20.90%
• Price Target: $5.84
• Consensus Rating: Hold

Redwood Trust Stock Analysis - MarketRank™

Redwood Trust scored higher than 99% of companies evaluated by MarketBeat, and ranked 35th out of 839 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.2 / 5
• Analyst Rating: Hold

Consensus Rating

Redwood Trust has received a consensus rating of Hold. The company's average rating score is 2.45, and is based on no strong buy ratings, 6 buy ratings, 4 hold ratings, and 1 sell rating.

Upside Potential

Redwood Trust has a consensus price target of $5.84, representing about 69.6% upside from its current price of $3.45.

Amount of Analyst Coverage

Redwood Trust has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 10.68%

Earnings Growth

Earnings for Redwood Trust are expected to grow by 10.68% in the coming year, from $1.03 to $1.14 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Redwood Trust is -86.10, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Redwood Trust is -86.10, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Redwood Trust has a P/B Ratio of 0.48. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

17.71% of the float of Redwood Trust has been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Redwood Trust has recently increased by 238.41%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Leadership

Redwood Trust is a leading dividend payer. It pays a dividend yield of 20.40%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Redwood Trust has only been increasing its dividend for 1 years.

Dividend Sustainability

Based on earnings estimates, Redwood Trust will have a dividend payout ratio of 63.16% next year. This indicates that Redwood Trust will be able to sustain or increase its dividend.

News and Social Media

• Score: 4.2 / 5
• News Sentiment: 1.74

News Sentiment

Redwood Trust has a news sentiment score of 1.74. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.60 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 2 news articles for Redwood Trust this week, compared to 2 articles on an average week.

Search Interest

14 people have searched for RWT on MarketBeat in the last 30 days. This is an increase of 100% compared to the previous 30 days.

MarketBeat Follows

4 people have added Redwood Trust to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 4.4 / 5
• Insider Trading: Acquiring Shares

Cluster Insider Buying

5 insiders have purchased shares of Redwood Trust in the last three months. Multiple insiders buying is a strong bullish signal.

Net Insider Buying

Over the last three months, insiders have purchased a net $948,402.00 in company stock, which represents 0.2192% of the company's market cap.

Insider Buying vs. Insider Selling

In the past three months, Redwood Trust insiders have bought more of their company's stock than they have sold. Specifically, they have bought $948,402.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

3.30% of the stock of Redwood Trust is held by insiders.

Percentage Held by Institutions

74.34% of the stock of Redwood Trust is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Company Calendar

• Last Earnings: 7/28/2026
• Record date for 9/30 Dividend: 9/23/2026
• Ex-Dividend for 9/30 Dividend: 9/23/2026
• Dividend Payable: 9/30/2026
• Today: 10/05/2026
• Next Earnings (Estimated): 11/04/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Mortgage Real Estate Investment Trusts (REITs)
• Sub-Industry: Mortgage REITs
• Current Symbol: NYSE:RWT
• CIK: 930236
• Web: www.redwoodtrust.com
• Phone: (415) 389-7373
• Fax: 415-381-1773
• Employees: 351
• Year Founded: 1994

Price Target and Rating

• Average Price Target for Redwood Trust: $5.84
• High Price Target: $6.50
• Low Price Target: $4.75
• Potential Upside/Downside: +69.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.45
• Research Coverage: 11 Analysts

Profitability

• EPS (Trailing Twelve Months): ($0.04)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: 3.34
• P/E Growth: N/A
• Net Income: -$70.03 million
• Net Margins: 0.42%
• Pretax Margin: 1.37%
• Return on Equity: 16.02%
• Return on Assets: 0.57%

Debt

• Debt-to-Equity Ratio: 31.69
• Current Ratio: 67.49
• Quick Ratio: 67.49

Sales & Book Value

• Annual Sales: $1.18 billion
• Price / Sales: 0.37
• Cash Flow: $1.09 per share
• Price / Cash Flow: 3.16
• Book Value: $7.23 per share
• Price / Book: 0.48

Miscellaneous

• Outstanding Shares: 125,610,000
• Free Float: 121,467,000
• Market Cap: $432.73 million
• Optionable: Optionable
• Beta: 1.45