Redwood Trust (NYSE:RWT) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Redwood Trust from "strong-buy" to "hold" on Monday; the stock's consensus rating is currently a Hold (five Buys, four Holds, one Sell) with an average price target of $6.82.
• Redwood opened at $6.05 and trades in a 12‑month range of $5.00–$6.97; the company reported quarterly EPS of $0.20 (missing estimates of $0.22), a negative net margin, and a market cap of roughly $756M.

Redwood Trust (NYSE:RWT - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Several other research firms also recently issued reports on RWT. JPMorgan Chase & Co. upgraded Redwood Trust from a "neutral" rating to an "overweight" rating and set a $6.00 target price on the stock in a research report on Friday, January 23rd. Citigroup restated a "market perform" rating on shares of Redwood Trust in a research report on Wednesday, February 18th. JonesTrading restated a "buy" rating and set a $6.25 target price on shares of Redwood Trust in a research report on Tuesday, March 3rd. Wall Street Zen downgraded Redwood Trust from a "hold" rating to a "sell" rating in a research report on Monday, April 6th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Redwood Trust in a research report on Thursday, January 22nd. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $6.82.

Redwood Trust Price Performance

Redwood Trust stock opened at $6.05 on Monday. Redwood Trust has a 12 month low of $5.00 and a 12 month high of $6.97. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 24.34. The business's 50 day simple moving average is $5.87 and its 200 day simple moving average is $5.66. The company has a market cap of $756.25 million, a price-to-earnings ratio of -9.92 and a beta of 1.52.

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RWT. Clearstead Advisors LLC grew its stake in shares of 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 valued at $30,000 after buying an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings 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 boosted its holdings 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. purchased a new stake in shares of Redwood Trust during the fourth quarter worth about $55,000. Finally, Bank of Marin purchased a new stake in shares of Redwood Trust during the fourth quarter worth about $58,000. Institutional investors own 74.34% of the company's stock.

About Redwood Trust

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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