Jones Trading Cuts Redwood Trust (NYSE:RWT) Price Target to $7.00

Redwood Trust (NYSE:RWT) had its price target lowered by Jones Trading from $8.00 to $7.00 in a report published on Thursday,Benzinga reports. Jones Trading currently has a buy rating on the real estate investment trust’s stock.

Several other equities research analysts have also recently issued reports on the company. StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Wednesday, March 5th. JMP Securities reaffirmed a “market outperform” rating and issued a $8.00 price target on shares of Redwood Trust in a research note on Friday, February 14th. Finally, JPMorgan Chase & Co. reduced their price objective on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research note on Wednesday. Five investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $7.50.

Redwood Trust Stock Up 4.2 %

Redwood Trust stock opened at $5.54 on Thursday. The business’s 50-day moving average price is $6.05 and its 200 day moving average price is $6.64. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.09. The firm has a market cap of $736.06 million, a price-to-earnings ratio of 16.77 and a beta of 1.15. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $8.15.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Thursday, February 13th. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.03). The business had revenue of $27.60 million during the quarter, compared to analyst estimates of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. As a group, sell-side analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 24th were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 13.01%. The ex-dividend date was Monday, March 24th. Redwood Trust’s dividend payout ratio (DPR) is currently 218.18%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. LaSalle St. Investment Advisors LLC purchased a new position in Redwood Trust during the fourth quarter worth about $37,000. Sovran Advisors LLC purchased a new stake in shares of Redwood Trust during the 4th quarter valued at approximately $63,000. KBC Group NV lifted its holdings in Redwood Trust by 86.7% in the fourth quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock valued at $67,000 after acquiring an additional 4,788 shares during the last quarter. Zacks Investment Management purchased a new position in Redwood Trust in the fourth quarter worth approximately $74,000. Finally, Cibc World Markets Corp acquired a new stake in Redwood Trust during the fourth quarter worth $80,000. 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.