Wall Street Zen Upgrades Redwood Trust (NYSE:RWT) to "Hold"

Key Points

• Wall Street Zen upgraded Redwood Trust (RWT) from "sell" to "hold," while analysts overall rate the stock a "Moderate Buy" with a consensus target price of $6.96 and a mix of 1 Strong Buy, 5 Buy, 2 Hold, and 1 Sell ratings.
• Shares opened at $5.30 (12‑month range $4.68–$6.97) with a market cap of about $661.8M; the company shows a negative P/E (-8.68) and recently missed quarterly EPS ($0.20 vs. $0.22 estimate).
• Institutional investors hold roughly 74.34% of the stock, and several institutions (e.g., Clearstead, Russell Investments, CWM) have recently added to or initiated positions.

Redwood Trust (NYSE:RWT - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a note issued to investors on Sunday.

RWT has been the subject of a number of other research reports. Citigroup reaffirmed a "market perform" rating on shares of Redwood Trust in a research report on Wednesday, February 18th. Weiss Ratings reiterated a "sell (d)" rating on shares of Redwood Trust in a research report on Thursday, January 22nd. JonesTrading reissued a "buy" rating and set a $6.25 target price on shares of Redwood Trust in a research note on Tuesday, March 3rd. JPMorgan Chase & Co. upgraded Redwood Trust from a "neutral" rating to an "overweight" rating and set a $6.00 target price for the company in a report on Friday, January 23rd. Finally, Keefe, Bruyette & Woods raised their price target on Redwood Trust from $5.75 to $7.00 and gave the stock a "market perform" rating in a research note on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Redwood Trust has a consensus rating of "Moderate Buy" and a consensus target price of $6.96.

Redwood Trust Price Performance

Shares of Redwood Trust stock opened at $5.30 on Friday. The company's fifty day simple moving average is $5.86 and its two-hundred day simple moving average is $5.69. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $6.97. The firm has a market cap of $661.82 million, a PE ratio of -8.68 and a beta of 1.55. The company has a quick ratio of 55.15, a current ratio of 55.15 and a debt-to-equity ratio of 24.34.

Redwood Trust (NYSE:RWT - Get Free Report) last issued 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). The firm had revenue of $140.33 million for the quarter, compared to the consensus estimate of $24.88 million. Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. As a group, equities analysts expect that Redwood Trust will post 0.78 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RWT. Clearstead Advisors LLC lifted its stake in shares of Redwood Trust by 192.5% in the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 3,572 shares during the period. Russell Investments Group Ltd. grew its stake in Redwood Trust by 331.8% in 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 grew its stake in Redwood Trust by 54.2% in 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. bought a new position in Redwood Trust in the fourth quarter worth $55,000. Finally, Bank of Marin bought a new position in Redwood Trust in the fourth quarter worth $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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