Redwood Trust (RWT) Stock Price, News & Analysis

Company Overview

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. Redwood Trust also sponsors and manages securitization vehicles, generates revenue through net interest income and gain-on-sale transactions, and employs risk management strategies to hedge mortgage price and credit exposure. Through its securitization platform, the firm seeks to deliver stable, risk-adjusted returns to its shareholders.

Founded in 1987 and restructured as a REIT in 2004, Redwood Trust has developed long-standing relationships with mortgage originators, servicers, and capital markets participants. The company’s management team brings decades of experience in mortgage finance, securitization, and risk management, supporting its strategic objectives across changing market environments.

Redwood Trust’s investment activities are concentrated in U.S. markets, spanning a range of credit profiles within the prime and non-agency residential mortgage sectors. The firm is led by President and Chief Executive Officer Kenneth R. Caplan, supported by a seasoned leadership team dedicated to navigating the complexities of the residential mortgage finance landscape.

Key Stats

• Today's Range: $5.73 to $5.82
• 50-Day Range: $5.46 to $6.37
• 52-Week Range: $4.68 to $7.90
• Volume: 309,422 shs
• Average Volume: 1.01 million shs
• Market Capitalization: $747.56 million
• P/E Ratio: N/A
• Dividend Yield: 12.45%
• Price Target: $6.88
• Consensus Rating: Hold

Redwood Trust Stock Analysis - MarketRank™

Redwood Trust scored higher than 76% of companies evaluated by MarketBeat, and ranked 412th out of 923 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: 3.7 / 5
• Analyst Rating: Hold

Consensus Rating

Redwood Trust has received a consensus rating of Hold. The company's average rating score is 2.43, and is based on 4 buy ratings, 2 hold ratings, and 1 sell rating.

Upside Potential

Redwood Trust has a consensus price target of $6.88, representing about 18.8% upside from its current price of $5.79.

Amount of Analyst Coverage

Redwood Trust has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

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 -9.04, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Redwood Trust is -9.04, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Redwood Trust has a P/B Ratio of 0.68. 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

3.99% of the outstanding shares of Redwood Trust have been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 4.6.

Change versus previous month

Short interest in Redwood Trust has recently increased by 2.38%, indicating that investor sentiment is decreasing.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Redwood Trust is a leading dividend payer. It pays a dividend yield of 12.33%, 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 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

3.99% of the outstanding shares of Redwood Trust have been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 4.6.

Change versus previous month

Short interest in Redwood Trust has recently increased by 2.38%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.57

News Sentiment

Redwood Trust has a news sentiment score of 0.57. 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 0.69 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 2 news articles for Redwood Trust this week, compared to 3 articles on an average week.

Search Interest

26 people have searched for RWT on MarketBeat in the last 30 days. This is an increase of 189% compared to the previous 30 days.

MarketBeat Follows

5 people have added Redwood Trust to their MarketBeat watchlist in the last 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 start of the year. Since then, RWT shares have decreased by 11.4% and is now trading at $5.7850.

How were Redwood Trust's earnings last quarter?

Redwood Trust, Inc. (NYSE:RWT) announced its quarterly earnings results on Wednesday, July, 30th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.19 by $0.01. The real estate investment trust earned ($38.10) million during the quarter, compared to analysts' expectations of $31 million. Redwood Trust had a negative net margin of 6.93% and a positive trailing twelve-month return on equity of 8.70%.
Read the conference call transcript.

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: 7/30/2025
• Record date for 9/30 Dividend: 9/23/2025
• Ex-Dividend for 9/30 Dividend: 9/23/2025
• Dividend Payable: 9/30/2025
• Today: 10/07/2025
• Next Earnings (Estimated): 10/29/2025
• 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: 1994

Price Target and Rating

• Average Price Target for Redwood Trust: $6.88
• High Price Target: $8.50
• Low Price Target: $5.75
• Potential Upside/Downside: +18.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.43
• Research Coverage: 7 Analysts

Profitability

• EPS (Trailing Twelve Months): ($0.64)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: 7.44
• P/E Growth: N/A
• Net Income: $54 million
• Net Margins: -6.93%
• Pretax Margin: -4.66%
• Return on Equity: 8.70%
• Return on Assets: 0.49%

Debt

• Debt-to-Equity Ratio: 20.00
• Current Ratio: 40.39
• Quick Ratio: 40.39

Sales & Book Value

• Annual Sales: $150.66 million
• Price / Sales: 4.97
• Cash Flow: $0.77 per share
• Price / Cash Flow: 7.50
• Book Value: $8.46 per share
• Price / Book: 0.69

Miscellaneous

• Outstanding Shares: 129,223,000
• Free Float: 125,992,000
• Market Cap: $749.49 million
• Optionable: Optionable
• Beta: 1.43