Redwood Trust (RWT) Stock Price, News & Analysis

Company Overview

Redwood Trust, Inc. is a publicly traded real estate investment trust that specializes in the acquisition, financing and management of residential mortgage loans and mortgage-backed securities. The company focuses on non-agency residential mortgage-backed securities (RMBS), bilateral whole loan purchases and credit risk transfer (CRT) transactions, generating income through net interest margin and fee income associated with structuring and servicing activities.

Redwood Trust’s investment strategy centers on credit-sensitive assets, including prime and certain jumbo RMBS, as well as risk-retained or risk-transferred whole loans. By targeting both newly originated and seasoned mortgage pools, the company seeks to capitalize on market dislocations and spread opportunities, while employing hedging strategies to manage interest rate and prepayment risks.

Incorporated in California in 1987 and headquartered in Mill Valley, Redwood Trust completed its initial public offering in 2005. With operations spanning the U.S. mortgage market, the firm leverages relationships with originators and servicers to source assets across a variety of geographic regions and borrower credit profiles.

Under the leadership of founder and chairman David Willick, Redwood Trust is supported by a seasoned executive team with deep experience in mortgage finance and risk management. The company maintains disciplined underwriting standards and a focus on risk-adjusted returns as it navigates evolving market conditions and regulatory frameworks.

Key Stats

• Today's Range: $5.99 to $6.13
• 50-Day Range: $5.39 to $6.14
• 52-Week Range: $4.68 to $8.15
• Volume: 768,490 shs
• Average Volume: 939,124 shs
• Market Capitalization: $800.05 million
• P/E Ratio: 27.32
• Dividend Yield: 11.98%
• Price Target: $7.39
• Consensus Rating: Moderate Buy

Redwood Trust Stock Analysis - MarketRank™

Redwood Trust scored higher than 57% of companies evaluated by MarketBeat, and ranked 574th out of 933 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Redwood Trust has received a consensus rating of Moderate Buy. The company's average rating score is 2.56, and is based on 3 buy ratings, 5 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Redwood Trust has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 15.38%

Earnings Growth

Earnings for Redwood Trust are expected to grow by 15.38% in the coming year, from $0.78 to $0.90 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Redwood Trust is 27.32, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 26.50.

Price to Earnings Ratio vs. Sector

The P/E ratio of Redwood Trust is 27.32, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 19.15.

Price to Book Value per Share Ratio

Redwood Trust has a P/B Ratio of 0.71. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

3.61% of the float of Redwood Trust has been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 4.3.

Change versus previous month

Short interest in Redwood Trust has recently increased by 13.90%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Redwood Trust is a leading dividend payer. It pays a dividend yield of 11.84%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Redwood Trust has only been increasing its dividend for 1 years.

Dividend Coverage

The dividend payout ratio of Redwood Trust is 327.27%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Redwood Trust will have a dividend payout ratio of 80.00% in the coming year. This indicates that Redwood Trust may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.61% of the float of Redwood Trust has been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 4.3.

Change versus previous month

Short interest in Redwood Trust has recently increased by 13.90%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.0 / 5
• News Sentiment: 0.64

News Sentiment

Redwood Trust has a news sentiment score of 0.64. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.88 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 4 news articles for Redwood Trust this week, compared to 3 articles on an average week.

Search Interest

Only 2 people have searched for RWT on MarketBeat in the last 30 days. This is a decrease of -60% compared to the previous 30 days.

MarketBeat Follows

Only 2 people have added Redwood Trust to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Redwood Trust insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.70% of the stock of Redwood Trust is held by insiders.

Percentage Held by Institutions

74.34% of the stock of Redwood Trust is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RWT Stock Analysis - Frequently Asked Questions

How have RWT shares performed this year?

Redwood Trust's stock was trading at $6.53 at the beginning of the year. Since then, RWT stock has decreased by 8.0% and is now trading at $6.01.

How were Redwood Trust's earnings last quarter?

Redwood Trust, Inc. (NYSE:RWT) released its quarterly earnings data on Wednesday, April, 30th. The real estate investment trust reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.17 by $0.03. The real estate investment trust had revenue of $73.80 million for the quarter, compared to analysts' expectations of $26.55 million. Redwood Trust had a net margin of 3.93% and a trailing twelve-month return on equity of 7.82%.
Read the conference call transcript.

Who are Redwood Trust's major shareholders?

Redwood Trust's top institutional investors include Clear Harbor Asset Management LLC (0.16%), State of Alaska Department of Revenue (0.06%), Westbourne Investments Inc. (0.03%) and Janney Montgomery Scott LLC (0.01%). Insiders that own company stock include Andrew P Stone, Collin L Cochrane and Brooke Carillo.
View institutional ownership trends.

How do I buy shares of Redwood Trust?

Shares of RWT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Redwood Trust own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Redwood Trust investors own include Rithm Capital (RITM), Meta Platforms (META), NVIDIA (NVDA), Energy Transfer (ET), Verizon Communications (VZ), Annaly Capital Management (NLY) and AT&T (T).

Company Calendar

• Last Earnings: 4/30/2025
• Record date for 6/30 Dividend: 6/23/2025
• Ex-Dividend for 6/30 Dividend: 6/23/2025
• Dividend Payable: 6/30/2025
• Today: 7/18/2025
• Next Earnings (Estimated): 7/30/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: REIT - MTGE TRUST
• Sub-Industry: Mortgage REITs
• Current Symbol: NYSE:RWT
• CIK: 930236
• Web: www.redwoodtrust.com
• Phone: (415) 389-7373
• Fax: 415-381-1773
• Employees: 300
• Year Founded: N/A

Price Target and Rating

• Average Price Target for Redwood Trust: $7.39
• High Price Target: $9.50
• Low Price Target: $6.00
• Potential Upside/Downside: +22.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.56
• Research Coverage: 9 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.22
• Trailing P/E Ratio: 10.48
• Forward P/E Ratio: 7.71
• P/E Growth: N/A
• Net Income: $54 million
• Net Margins: 3.93%
• Pretax Margin: 6.37%
• Return on Equity: 7.82%
• Return on Assets: 0.49%

Debt

• Debt-to-Equity Ratio: 16.32
• Current Ratio: 39.35
• Quick Ratio: 39.35

Sales & Book Value

• Annual Sales: $945.16 million
• Price / Sales: 0.85
• Cash Flow: $0.78 per share
• Price / Cash Flow: 7.71
• Book Value: $8.46 per share
• Price / Book: 0.71

Miscellaneous

• Outstanding Shares: 133,120,000
• Free Float: 129,524,000
• Market Cap: $800.05 million
• Optionable: Optionable
• Beta: 1.30