Wall Street Zen Downgrades Redwood Trust (NYSE:RWT) to Sell

Key Points

• Wall Street Zen downgraded Redwood Trust (NYSE:RWT) from a "hold" to a sell rating.
• Analyst coverage is mixed but the MarketBeat consensus remains a Moderate Buy with an average price target of $6.82 (ratings: 1 Strong Buy, 5 Buy, 3 Hold, 1 Sell).
• Redwood missed Q4 EPS ($0.20 vs. $0.22), trades around $5.65 with a market cap of $705.6M and a negative PE (-9.25), and institutional investors own about 74.3% of the stock.

Redwood Trust (NYSE:RWT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Monday.

A number of other research analysts also recently weighed in on the company. Keefe, Bruyette & Woods lifted their price target on Redwood Trust from $5.75 to $7.00 and gave the company a "market perform" rating in a report on Wednesday, February 18th. Piper Sandler decreased their price objective on Redwood Trust from $6.50 to $6.00 and set a "neutral" rating for the company in a research report on Thursday. Zacks Research raised Redwood Trust from a "hold" rating to a "strong-buy" rating in a research note on Monday, January 26th. JonesTrading reiterated a "buy" rating and issued a $6.25 target price on shares of Redwood Trust in a report on Tuesday, March 3rd. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $6.82.

Redwood Trust Stock Down 0.3%

Shares of NYSE:RWT opened at $5.65 on Monday. The firm has a 50 day simple moving average of $5.84 and a 200 day simple moving average of $5.66. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.97. The company has a debt-to-equity ratio of 24.34, a quick ratio of 55.15 and a current ratio of 55.15. The company has a market cap of $705.63 million, a PE ratio of -9.25 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 earnings per share 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 analysts' expectations of $24.88 million. Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%. As a group, research analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RWT. Corient Private Wealth LLC raised its stake in shares of Redwood Trust by 74.5% during the 4th quarter. Corient Private Wealth LLC now owns 19,658 shares of the real estate investment trust's stock worth $109,000 after purchasing an additional 8,390 shares in the last quarter. TMB Capital Partners LLC bought a new stake in shares of Redwood Trust in the 4th quarter valued at approximately $64,000. Invesco Ltd. increased its holdings in Redwood Trust by 25.4% in the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust's stock worth $14,107,000 after buying an additional 516,630 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in Redwood Trust by 40.9% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,625 shares of the real estate investment trust's stock worth $120,000 after buying an additional 6,281 shares during the last quarter. Finally, Vident Advisory LLC raised its position in Redwood Trust by 4.7% during the fourth quarter. Vident Advisory LLC now owns 39,606 shares of the real estate investment trust's stock valued at $219,000 after acquiring an additional 1,773 shares in the last quarter. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.