Wedbush Weighs in on Redwood Trust, Inc.’s Q1 2024 Earnings (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) – Wedbush dropped their Q1 2024 earnings per share (EPS) estimates for Redwood Trust in a research report issued to clients and investors on Thursday, April 11th. Wedbush analyst J. Mccanless now expects that the real estate investment trust will earn $0.09 per share for the quarter, down from their previous forecast of $0.10. Wedbush has a “Neutral” rating and a $6.50 price target on the stock. The consensus estimate for Redwood Trust’s current full-year earnings is $0.47 per share. Wedbush also issued estimates for Redwood Trust’s 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 brokerages have also recently weighed in on RWT. UBS Group reduced their price target on Redwood Trust from $9.00 to $8.50 and set a “buy” rating on the stock in a research note on Tuesday, March 5th. Piper Sandler cut their target price 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. Wells Fargo & Company cut their target price 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. Keefe, Bruyette & Woods cut their target price on Redwood Trust from $7.75 to $7.25 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, Raymond James cut their target price 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 research analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $7.64.

Redwood Trust Price Performance

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

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Thursday, March 21st were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 11.16%. The ex-dividend date of this dividend was Wednesday, March 20th. Redwood Trust’s dividend payout ratio is -533.33%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RWT. International Assets Investment Management LLC raised its stake in shares of 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 worth $27,000 after buying an additional 3,205 shares during the period. Quarry LP raised its stake in shares of Redwood Trust by 736.7% in the first quarter. Quarry LP now owns 5,614 shares of the real estate investment trust’s stock worth $38,000 after buying an additional 4,943 shares during the period. Tower Research Capital LLC TRC raised its stake in shares of 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 worth $43,000 after buying an additional 2,796 shares during the period. O Dell Group LLC bought a new position in shares of Redwood Trust in the fourth quarter worth about $44,000. Finally, Metropolitan Life Insurance Co NY raised its stake in shares of 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 buying an additional 1,649 shares during the period. 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.