Redwood Trust (NYSE:RWT) Share Price Passes Above Two Hundred Day Moving Average - What's Next?

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $6.05 and traded as high as $6.08. Redwood Trust shares last traded at $6.03, with a volume of 584,576 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have commented on RWT. Keefe, Bruyette & Woods cut Redwood Trust from an "outperform" rating to a "market perform" rating and cut their target price for the company from $7.00 to $6.50 in a research note on Thursday. Wall Street Zen upgraded Redwood Trust from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Jones Trading reiterated a "buy" rating and set a $7.00 price objective on shares of Redwood Trust in a research note on Friday, May 2nd. JMP Securities dropped their price objective on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating on the stock in a research note on Thursday, April 17th. Finally, JPMorgan Chase & Co. upped their price objective on Redwood Trust from $5.50 to $6.00 and gave the stock a "neutral" rating in a research note on Thursday, May 1st. Six analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $7.39.

Redwood Trust Price Performance

The company has a debt-to-equity ratio of 16.32, a quick ratio of 39.35 and a current ratio of 39.35. The firm has a market capitalization of $802.71 million, a price-to-earnings ratio of 27.41 and a beta of 1.30. The business has a fifty day moving average of $5.76 and a two-hundred day moving average of $6.06.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by ($0.03). The business had revenue of $73.80 million for the quarter, compared to analyst estimates of $26.55 million. Redwood Trust had a return on equity of 7.82% and a net margin of 3.93%. As a group, research analysts predict that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.94%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust's payout ratio is presently 327.27%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RWT. Bank of New York Mellon Corp grew its holdings in Redwood Trust by 9.8% in the 4th quarter. Bank of New York Mellon Corp now owns 1,003,627 shares of the real estate investment trust's stock valued at $6,554,000 after buying an additional 89,335 shares in the last quarter. NFC Investments LLC grew its holdings in Redwood Trust by 2.0% in the 4th quarter. NFC Investments LLC now owns 494,525 shares of the real estate investment trust's stock valued at $3,229,000 after buying an additional 9,550 shares in the last quarter. Cibc World Markets Corp acquired a new position in Redwood Trust in the 4th quarter valued at $80,000. Boston Partners grew its holdings in Redwood Trust by 8.3% in the 4th quarter. Boston Partners now owns 2,707,027 shares of the real estate investment trust's stock valued at $17,561,000 after buying an additional 206,698 shares in the last quarter. Finally, Virtu Financial LLC acquired a new position in Redwood Trust in the 4th quarter valued at $208,000. 74.34% of the stock is owned by institutional investors and hedge funds.

Redwood Trust Company Profile

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.