Redwood Trust (NYSE:RWT) Rating Lowered to Market Perform at Keefe, Bruyette & Woods

Redwood Trust (NYSE:RWT - Get Free Report) was downgraded by Keefe, Bruyette & Woods from an "outperform" rating to a "market perform" rating in a note issued to investors on Thursday, Marketbeat reports. They currently have a $6.50 price objective on the real estate investment trust's stock, down from their previous price objective of $7.00. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 7.79% from the stock's previous close.

RWT has been the topic of several other reports. JPMorgan Chase & Co. boosted their target price on shares of Redwood Trust from $5.50 to $6.00 and gave the company a "neutral" rating in a report on Thursday, May 1st. Wall Street Zen upgraded Redwood Trust from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. JMP Securities lowered their price objective on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating for the company in a research report on Thursday, April 17th. UBS Group raised their target price on Redwood Trust from $6.50 to $7.00 and gave the stock a "buy" rating in a research note on Monday, May 5th. Finally, Jones Trading reaffirmed a "buy" rating and issued a $7.00 price target on shares of Redwood Trust in a research note on Friday, May 2nd. Six research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, Redwood Trust has a consensus rating of "Moderate Buy" and an average target price of $7.39.

Redwood Trust Price Performance

Shares of NYSE:RWT traded down $0.04 during midday trading on Thursday, hitting $6.03. The company had a trading volume of 1,021,110 shares, compared to its average volume of 953,985. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $8.15. The stock has a market cap of $802.71 million, a price-to-earnings ratio of 27.41 and a beta of 1.30. The company has a debt-to-equity ratio of 16.32, a current ratio of 39.35 and a quick ratio of 39.35. The business's 50-day simple moving average is $5.76 and its 200-day simple moving average is $6.06.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.03). The company had revenue of $73.80 million during 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%. On average, research analysts predict that Redwood Trust will post 0.78 earnings per share for the current year.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds have recently bought and sold shares of RWT. LaSalle St. Investment Advisors LLC purchased a new stake in Redwood Trust during the fourth quarter worth about $37,000. Quantbot Technologies LP acquired a new position in shares of Redwood Trust in the first quarter valued at approximately $37,000. AlphaQuest LLC increased its stake in Redwood Trust by 165.5% during the 1st quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust's stock worth $52,000 after buying an additional 5,354 shares during the period. Carrera Capital Advisors acquired a new stake in Redwood Trust during the 1st quarter worth approximately $65,000. Finally, XTX Topco Ltd purchased a new position in Redwood Trust in the 1st quarter valued at approximately $65,000. Institutional investors and hedge funds own 74.34% of the company's stock.

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.