Redwood Trust (NYSE:RWT) Posts Earnings Results, Misses Estimates By $0.02 EPS

Redwood Trust (NYSE:RWTGet Rating) posted its quarterly earnings data on Thursday. The real estate investment trust reported $0.24 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.02), MarketWatch Earnings reports. Redwood Trust had a return on equity of 14.57% and a net margin of 55.48%. During the same quarter in the prior year, the company earned $0.40 EPS.

Shares of RWT traded up $0.65 on Friday, reaching $9.70. The stock had a trading volume of 2,502,122 shares, compared to its average volume of 1,680,295. Redwood Trust has a 12-month low of $8.63 and a 12-month high of $14.17. The company has a debt-to-equity ratio of 7.86, a quick ratio of 5.53 and a current ratio of 5.53. The firm has a market capitalization of $1.17 billion, a price-to-earnings ratio of 5.13 and a beta of 0.97. The company has a 50-day simple moving average of $10.14 and a 200-day simple moving average of $11.98.

The company also recently announced a quarterly dividend, which was paid on Thursday, March 31st. Stockholders of record on Thursday, March 24th were paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 9.48%. The ex-dividend date of this dividend was Wednesday, March 23rd. Redwood Trust’s payout ratio is presently 48.68%.

A number of analysts have recently issued reports on RWT shares. Piper Sandler dropped their price objective on shares of Redwood Trust from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Tuesday, April 5th. Credit Suisse Group lowered their target price on Redwood Trust from $16.00 to $14.00 and set an “outperform” rating for the company in a research note on Monday, February 28th. TheStreet lowered Redwood Trust from a “c” rating to a “d+” rating in a research note on Thursday, April 14th. Zacks Investment Research lowered Redwood Trust from a “hold” rating to a “sell” rating in a research note on Thursday, April 21st. Finally, StockNews.com began coverage on Redwood Trust in a research note on Thursday, March 31st. They issued a “hold” rating for the company. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $14.29.

A number of hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC increased its position in Redwood Trust by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 1,937,285 shares of the real estate investment trust’s stock valued at $25,552,000 after buying an additional 30,327 shares in the last quarter. Norges Bank bought a new position in Redwood Trust during the 4th quarter valued at approximately $14,979,000. Goldman Sachs Group Inc. increased its position in Redwood Trust by 206.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 862,301 shares of the real estate investment trust’s stock valued at $11,374,000 after buying an additional 581,021 shares in the last quarter. Sei Investments Co. bought a new position in Redwood Trust during the 4th quarter valued at approximately $5,674,000. Finally, Parametric Portfolio Associates LLC increased its position in Redwood Trust by 11.2% during the 4th quarter. Parametric Portfolio Associates LLC now owns 425,818 shares of the real estate investment trust’s stock valued at $5,617,000 after buying an additional 42,991 shares in the last quarter. 72.37% of the stock is owned by institutional investors.

About Redwood Trust (Get Rating)

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential 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.

Further Reading

Earnings History for Redwood Trust (NYSE:RWT)

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