Redwood Trust (NYSE:RWT) Cut to “Neutral” at Wedbush

Redwood Trust (NYSE:RWT) was downgraded by research analysts at Wedbush from an “outperform” rating to a “neutral” rating in a research note issued to investors on Thursday, Marketbeat.com reports. They currently have a $6.50 price target on the real estate investment trust’s stock, down from their prior price target of $8.00. Wedbush’s target price indicates a potential upside of 13.34% from the company’s previous close. Wedbush also issued estimates for Redwood Trust’s Q1 2024 earnings at $0.09 EPS, Q2 2024 earnings at $0.11 EPS, Q3 2024 earnings at $0.14 EPS, Q4 2024 earnings at $0.17 EPS and FY2025 earnings at $0.65 EPS.

Several other research firms also recently weighed in on RWT. UBS Group decreased their target price on Redwood Trust from $9.00 to $8.50 and set a “buy” rating for the company in a research report on Tuesday, March 5th. Wells Fargo & Company cut their price target on Redwood Trust from $8.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 21st. Piper Sandler cut their price target on Redwood Trust from $7.50 to $7.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 21st. JMP Securities restated a “market outperform” rating and set a $8.00 price target on shares of Redwood Trust in a research note on Wednesday. Finally, Raymond James cut their price target on Redwood Trust from $9.00 to $8.50 and set a “strong-buy” rating on the stock in a research note on Friday, January 19th. Four analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $7.64.

Redwood Trust Stock Down 1.6 %

NYSE:RWT opened at $5.74 on Thursday. Redwood Trust has a twelve month low of $5.47 and a twelve month high of $8.30. The company has a market cap of $754.61 million, a price-to-earnings ratio of -47.75 and a beta of 1.48. The stock has a fifty day simple moving average of $6.26 and a 200-day simple moving average of $6.76. The company has a current ratio of 7.36, a quick ratio of 7.36 and a debt-to-equity ratio of 10.12.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors and hedge funds have recently added to or reduced their stakes in RWT. International Assets Investment Management LLC grew its stake in Redwood Trust by 641.0% in the fourth quarter. International Assets Investment Management LLC now owns 3,705 shares of the real estate investment trust’s stock valued at $27,000 after purchasing an additional 3,205 shares during the last quarter. Quarry LP grew its stake in Redwood Trust by 736.7% in the first quarter. Quarry LP now owns 5,614 shares of the real estate investment trust’s stock valued at $38,000 after purchasing an additional 4,943 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in Redwood Trust by 71.9% in the second quarter. Tower Research Capital LLC TRC now owns 6,683 shares of the real estate investment trust’s stock valued at $43,000 after purchasing an additional 2,796 shares during the last quarter. O Dell Group LLC acquired a new stake in Redwood Trust in the fourth quarter worth about $44,000. Finally, Metropolitan Life Insurance Co NY boosted its holdings in Redwood Trust by 29.6% in the fourth quarter. Metropolitan Life Insurance Co NY now owns 7,213 shares of the real estate investment trust’s stock worth $49,000 after acquiring an additional 1,649 shares in the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

About Redwood Trust

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.