Redwood Trust (NYSE:RWT) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Redwood Trust from a “sell” to a “hold” rating, adding to a mixed but generally cautious analyst outlook on the stock.
• Other firms have been split on RWT: Piper Sandler raised its price target to $6.50 with a neutral rating, while JPMorgan has an overweight rating and several others remain at hold or sell.
• Redwood Trust recently reported Q4 EPS of $0.20, missing estimates, though revenue came in well above expectations; the stock opened at $5.56 and analysts currently see a consensus price target of $6.89.

Redwood Trust (NYSE:RWT - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

Several other brokerages also recently issued reports on RWT. Piper Sandler lifted their price objective on Redwood Trust from $6.00 to $6.50 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a report on Thursday, January 22nd. Zacks Research lowered Redwood Trust from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Citigroup reaffirmed a "market perform" rating on shares of Redwood Trust in a report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. upgraded shares of Redwood Trust from a "neutral" rating to an "overweight" rating and set a $6.00 price target on the stock in a research report on Friday, January 23rd. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Redwood Trust has an average rating of "Hold" and a consensus price target of $6.89.

Redwood Trust Stock Performance

NYSE RWT opened at $5.56 on Friday. The firm has a market cap of $694.38 million, a price-to-earnings ratio of -7.12 and a beta of 1.40. The company has a 50 day moving average of $5.78 and a 200-day moving average of $5.67. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 26.42. Redwood Trust has a 1-year low of $5.00 and a 1-year high of $6.97.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). The firm had revenue of $140.33 million during the quarter, compared to the consensus estimate of $24.88 million. Redwood Trust had a negative net margin of 9.70% and a positive return on equity of 14.27%. On average, equities analysts forecast that Redwood Trust will post 1.28 earnings per share for the current fiscal year.

Institutional Trading of Redwood Trust

Several hedge funds have recently added to or reduced their stakes in RWT. Clearstead Advisors LLC lifted its holdings in Redwood Trust by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust's stock worth $30,000 after acquiring an additional 3,572 shares in the last quarter. Russell Investments Group Ltd. raised its position in shares of Redwood Trust by 331.8% during the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust's stock worth $47,000 after purchasing an additional 6,082 shares during the period. CWM LLC raised its position in shares of Redwood Trust by 54.2% during the third quarter. CWM LLC now owns 9,514 shares of the real estate investment trust's stock worth $55,000 after purchasing an additional 3,346 shares during the period. Westbourne Investments Inc. bought a new position in shares of Redwood Trust during the 4th quarter valued at about $55,000. Finally, Bank of Marin bought a new position in shares of Redwood Trust during the 4th quarter valued at about $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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