Redwood Trust (NYSE:RWT) Shares Cross Above 200 Day Moving Average - What's Next?

Key Points

• Redwood Trust crossed above its 200-day moving average
• Analyst sentiment is mixed but tilted positive—MarketBeat shows a consensus rating of “Moderate Buy” with a $6.82 average price target, while broker actions range from JPMorgan’s upgrade to recent cuts from Wall Street Zen and Piper Sandler.
• The shares carry a high reported income yield—a $0.18 quarterly dividend ($0.72 annual) implying a 12.1% dividend yield

Redwood Trust, Inc. (NYSE:RWT - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $5.66 and traded as high as $5.97. Redwood Trust shares last traded at $5.9550, with a volume of 611,003 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on RWT shares. JonesTrading reaffirmed a "buy" rating and set a $6.25 target price on shares of Redwood Trust in a report on Tuesday, March 3rd. Citigroup reissued a "market perform" rating on shares of Redwood Trust in a research report on Wednesday, February 18th. JPMorgan Chase & Co. upgraded Redwood Trust from a "neutral" rating to an "overweight" rating and set a $6.00 price objective on the stock in a research note on Friday, January 23rd. Wall Street Zen cut Redwood Trust from a "hold" rating to a "sell" rating in a report on Monday, April 6th. Finally, Piper Sandler cut their target price on Redwood Trust from $6.50 to $6.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $6.82.

Redwood Trust Stock Up 0.4%

The firm's 50-day moving average price is $5.86 and its 200 day moving average price is $5.66. The company has a market capitalization of $744.35 million, a price-to-earnings ratio of -9.76 and a beta of 1.52. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 24.34.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $140.33 million for the quarter, compared to analyst estimates of $24.88 million. Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%. On average, sell-side analysts forecast that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 24th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.1%. The ex-dividend date of this dividend was Tuesday, March 24th. Redwood Trust's dividend payout ratio (DPR) is currently -118.03%.

Hedge Funds Weigh In On Redwood Trust

A number of institutional investors have recently modified their holdings of the business. Clearstead Advisors LLC lifted 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 buying an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. grew its position in Redwood Trust by 331.8% in the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust's stock valued at $47,000 after acquiring an additional 6,082 shares during the last quarter. CWM LLC grew its position in Redwood Trust by 54.2% in the third quarter. CWM LLC now owns 9,514 shares of the real estate investment trust's stock valued at $55,000 after acquiring an additional 3,346 shares during the last quarter. Westbourne Investments Inc. acquired a new position in Redwood Trust during the fourth quarter worth about $55,000. Finally, Bank of Marin acquired a new position in Redwood Trust during the fourth quarter worth 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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