Redwood Trust (NYSE:RWT) Stock Price Passes Above 200-Day Moving Average - Here's What Happened

Key Points

• Redwood Trust's stock price has recently surpassed its 200-day moving average of $5.83, indicating potential upward momentum in trading.
• Wall Street analysts have mixed opinions on Redwood Trust, with four analysts rating it as a Buy, while one firm downgraded it to a "strong sell," resulting in an average rating of "Hold."
• The company announced a quarterly dividend of $0.18 per share, equating to a 12.4% yield, despite having a negative payout ratio of -112.50%.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $5.83 and traded as high as $5.83. Redwood Trust shares last traded at $5.79, with a volume of 468,741 shares traded.

Wall Street Analyst Weigh In

RWT has been the topic of several analyst reports. BTIG Research reaffirmed a "buy" rating and issued a $8.50 price objective on shares of Redwood Trust in a research report on Friday, September 26th. UBS Group upped their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. Wall Street Zen cut Redwood Trust from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 2nd. JMP Securities lowered their price objective on Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 31st. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Redwood Trust in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $6.88.

Redwood Trust Stock Up 0.7%

The company has a market capitalization of $748.18 million, a PE ratio of -9.05 and a beta of 1.43. The company has a debt-to-equity ratio of 20.00, a current ratio of 40.39 and a quick ratio of 40.39. The company has a 50-day moving average of $5.94 and a two-hundred day moving average of $5.83.

Redwood Trust (NYSE:RWT - Get Free Report) last released its earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.01). The company had revenue of ($38.10) million for the quarter, compared to analysts' expectations of $31.00 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. Sell-side analysts anticipate that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 23rd were given a dividend of $0.18 per share. The ex-dividend date was Tuesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 12.4%. Redwood Trust's payout ratio is -112.50%.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors and hedge funds have recently bought and sold shares of the stock. LSV Asset Management raised its holdings in Redwood Trust by 58.9% during the first quarter. LSV Asset Management now owns 1,772,345 shares of the real estate investment trust's stock valued at $10,758,000 after acquiring an additional 657,141 shares during the period. Jane Street Group LLC bought a new stake in Redwood Trust during the first quarter valued at about $2,018,000. Nuveen LLC bought a new stake in Redwood Trust during the first quarter valued at about $1,983,000. Ceredex Value Advisors LLC raised its holdings in Redwood Trust by 24.4% during the first quarter. Ceredex Value Advisors LLC now owns 1,479,950 shares of the real estate investment trust's stock valued at $8,983,000 after acquiring an additional 289,900 shares during the period. Finally, Nomura Holdings Inc. raised its holdings in Redwood Trust by 220.3% during the second quarter. Nomura Holdings Inc. now owns 120,316 shares of the real estate investment trust's stock valued at $711,000 after acquiring an additional 220,316 shares during the period. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

About Redwood Trust

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.

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