Wedbush Has Bearish Estimate for Redwood Trust Q3 Earnings

Key Points

• Wedbush analysts have reduced their earnings estimate for Redwood Trust's Q3 2025 from $0.17 to $0.14 per share, while the consensus for full-year earnings remains at $0.78 per share.
• Redwood Trust recently missed analysts' consensus earnings expectations, reporting $0.18 per share, falling short of the projected $0.19.
• The company announced a quarterly dividend of $0.18 per share, resulting in an annualized dividend yield of 13.2%, although it has a negative payout ratio of -112.50%.

Redwood Trust, Inc. (NYSE:RWT - Free Report) - Equities researchers at Wedbush cut their Q3 2025 earnings per share (EPS) estimates for Redwood Trust in a report released on Wednesday, July 30th. Wedbush analyst J. Mccanless now forecasts that the real estate investment trust will post earnings of $0.14 per share for the quarter, down from their prior forecast of $0.17. The consensus estimate for Redwood Trust's current full-year earnings is $0.78 per share. Wedbush also issued estimates for Redwood Trust's Q4 2025 earnings at $0.17 EPS and FY2026 earnings at $0.72 EPS.

Other equities analysts have also recently issued research reports about the stock. Jones Trading reissued a "buy" rating and set a $7.00 target price on shares of Redwood Trust in a research report on Friday, May 2nd. UBS Group cut their price target on shares of Redwood Trust from $7.00 to $6.50 and set a "buy" rating for the company in a report on Thursday, July 31st. JPMorgan Chase & Co. lifted their price objective on shares of Redwood Trust from $5.50 to $6.00 and gave the stock a "neutral" rating in a report on Thursday, May 1st. Keefe, Bruyette & Woods lowered their price target on shares of Redwood Trust from $6.50 to $5.75 and set a "market perform" rating for the company in a research note on Tuesday. Finally, JMP Securities dropped their target price on shares of Redwood Trust from $7.50 to $7.00 and set a "market outperform" rating for the company in a report on Thursday, July 31st. One research analyst has rated the stock with a sell rating, four have issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Redwood Trust currently has an average rating of "Hold" and an average price target of $7.22.

Redwood Trust Stock Down 0.4%

NYSE RWT traded down $0.03 during trading hours on Friday, hitting $5.71. The company's stock had a trading volume of 513,090 shares, compared to its average volume of 998,007. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $8.15. The company has a market capitalization of $759.45 million, a PE ratio of -8.91 and a beta of 1.31. The company has a current ratio of 39.35, a quick ratio of 39.35 and a debt-to-equity ratio of 18.74. The company's 50-day simple moving average is $5.80 and its two-hundred day simple moving average is $5.99.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates of $0.19 by ($0.01). The business had revenue of ($38.10) million for the quarter, compared to analyst estimates of $31.00 million. Redwood Trust had a positive return on equity of 8.57% and a negative net margin of 9.26%.

Redwood Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were paid a $0.18 dividend. The ex-dividend date was Monday, June 23rd. This represents a $0.72 annualized dividend and a yield of 12.6%. Redwood Trust's payout ratio is presently -112.50%.

Institutional Trading of Redwood Trust

Several hedge funds have recently bought and sold shares of RWT. Invesco Ltd. raised its holdings in shares of Redwood Trust by 150.9% during the fourth quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust's stock worth $13,031,000 after purchasing an additional 1,200,050 shares during the last quarter. Balyasny Asset Management L.P. lifted its stake in shares of Redwood Trust by 19.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust's stock worth $13,023,000 after buying an additional 321,612 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Redwood Trust by 6.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,835,003 shares of the real estate investment trust's stock worth $11,138,000 after purchasing an additional 108,750 shares during the period. LSV Asset Management grew its holdings in shares of Redwood Trust by 58.9% in 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 purchasing an additional 657,141 shares in the last quarter. Finally, Northern Trust Corp grew its position in shares of Redwood Trust by 14.4% in the 4th quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust's stock valued at $10,248,000 after buying an additional 197,719 shares during the last quarter. Hedge funds and other institutional investors own 74.34% of the company's stock.

Redwood Trust Company Profile

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.