Caxton Associates LP Takes Position in Redwood Trust, Inc. (NYSE:RWT)

Caxton Associates LP bought a new stake in Redwood Trust, Inc. (NYSE:RWT) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 36,112 shares of the real estate investment trust’s stock, valued at approximately $234,000.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Louisiana State Employees Retirement System increased its stake in shares of Redwood Trust by 2.2% during the second quarter. Louisiana State Employees Retirement System now owns 66,500 shares of the real estate investment trust’s stock worth $432,000 after acquiring an additional 1,400 shares during the period. Mutual of America Capital Management LLC increased its stake in shares of Redwood Trust by 9.1% during the first quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the real estate investment trust’s stock worth $144,000 after acquiring an additional 1,889 shares during the period. Principal Financial Group Inc. increased its stake in shares of Redwood Trust by 0.4% during the fourth quarter. Principal Financial Group Inc. now owns 617,725 shares of the real estate investment trust’s stock worth $4,577,000 after acquiring an additional 2,296 shares during the period. Victory Capital Management Inc. increased its stake in shares of Redwood Trust by 7.8% during the second quarter. Victory Capital Management Inc. now owns 33,849 shares of the real estate investment trust’s stock worth $220,000 after acquiring an additional 2,450 shares during the period. Finally, EMC Capital Management increased its stake in shares of Redwood Trust by 11.3% during the first quarter. EMC Capital Management now owns 29,377 shares of the real estate investment trust’s stock worth $187,000 after acquiring an additional 2,989 shares during the period. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Stock Up 1.2 %

RWT stock opened at $7.75 on Friday. The company’s 50 day simple moving average is $7.40 and its 200-day simple moving average is $6.69. The firm has a market capitalization of $1.02 billion, a PE ratio of 110.71 and a beta of 1.58. Redwood Trust, Inc. has a 12 month low of $5.45 and a 12 month high of $8.15. The company has a debt-to-equity ratio of 12.97, a current ratio of 50.47 and a quick ratio of 50.47.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, beating the consensus estimate of $0.12 by $0.01. Redwood Trust had a net margin of 4.45% and a return on equity of 4.93%. During the same period last year, the firm earned $0.14 EPS. Equities analysts expect that Redwood Trust, Inc. will post 0.5 earnings per share for the current fiscal year.

Redwood Trust Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Monday, September 23rd will be given a $0.17 dividend. The ex-dividend date is Monday, September 23rd. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.16. This represents a $0.68 annualized dividend and a dividend yield of 8.77%. Redwood Trust’s dividend payout ratio is currently 971.43%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on RWT. Raymond James boosted their price target on shares of Redwood Trust from $8.50 to $9.50 and gave the stock a “strong-buy” rating in a research note on Thursday, September 19th. JMP Securities boosted their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a research note on Friday, July 19th. JPMorgan Chase & Co. upped their target price on shares of Redwood Trust from $7.00 to $7.50 and gave the stock an “overweight” rating in a research report on Tuesday, July 16th. Wells Fargo & Company upped their target price on shares of Redwood Trust from $7.50 to $8.50 and gave the stock an “equal weight” rating in a research report on Friday, September 20th. Finally, Piper Sandler upped their target price on shares of Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research report on Monday, August 5th. Four analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $8.08.

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.