Wedbush Issues Negative Outlook for Redwood Trust Earnings

Redwood Trust, Inc. (NYSE:RWT) – Investment analysts at Wedbush decreased their Q3 2025 earnings estimates for Redwood Trust in a report issued on Wednesday, July 30th. Wedbush analyst J. Mccanless now forecasts that the real estate investment trust will post earnings of $0.14 per share for the quarter, down from their previous estimate of $0.17. The consensus estimate for Redwood Trust’s current full-year earnings is $0.78 per share. Wedbush also issued estimates for Redwood Trust’s Q4 2025 earnings at $0.17 EPS and FY2026 earnings at $0.72 EPS.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. boosted their price target on shares of Redwood Trust from $5.50 to $6.00 and gave the stock a “neutral” rating in a research report on Thursday, May 1st. Keefe, Bruyette & Woods cut shares of Redwood Trust from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $7.00 to $6.50 in a research report on Thursday, July 10th. Wall Street Zen upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Thursday, May 22nd. Jones Trading reaffirmed a “buy” rating and set a $7.00 price objective on shares of Redwood Trust in a research note on Friday, May 2nd. Finally, JMP Securities dropped their price objective on shares of Redwood Trust from $7.50 to $7.00 and set a “market outperform” rating for the company in a research note on Thursday. Six research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Redwood Trust presently has a consensus rating of “Moderate Buy” and an average target price of $7.28.

Redwood Trust Stock Performance

Shares of RWT opened at $5.46 on Friday. The company’s fifty day moving average is $5.80 and its 200 day moving average is $6.00. Redwood Trust has a fifty-two week low of $4.68 and a fifty-two week high of $8.15. The stock has a market capitalization of $726.84 million, a PE ratio of -8.53 and a beta of 1.31. The company has a debt-to-equity ratio of 18.74, a quick ratio of 39.35 and a current ratio of 39.35.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.01). Redwood Trust had a positive return on equity of 8.57% and a negative net margin of 9.26%. The business had revenue of ($38.10) million during the quarter, compared to the consensus estimate of $31.00 million.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 23rd were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 13.2%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust’s payout ratio is presently -112.50%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Cambridge Investment Research Advisors Inc. boosted its stake in shares of Redwood Trust by 3.1% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust’s stock valued at $360,000 after purchasing an additional 1,767 shares during the period. Concurrent Investment Advisors LLC boosted its stake in shares of Redwood Trust by 4.7% during the second quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust’s stock valued at $245,000 after purchasing an additional 1,866 shares during the period. New York State Teachers Retirement System boosted its stake in shares of Redwood Trust by 1.5% during the first quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust’s stock valued at $925,000 after purchasing an additional 2,326 shares during the period. Focus Partners Wealth boosted its stake in shares of Redwood Trust by 14.1% during the fourth quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust’s stock valued at $132,000 after purchasing an additional 2,488 shares during the period. Finally, Apollon Wealth Management LLC boosted its stake in shares of Redwood Trust by 3.9% during the first quarter. Apollon Wealth Management LLC now owns 81,897 shares of the real estate investment trust’s stock valued at $497,000 after purchasing an additional 3,049 shares during the period. 74.34% of the stock is owned by hedge funds and other institutional investors.

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.