Redwood Trust, Inc. (NYSE:RWT) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of Redwood Trust, Inc. (NYSE:RWT) have been given an average rating of “Moderate Buy” by the seven research firms that are presently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $7.1786.

Several equities research analysts have recently issued reports on the company. Wall Street Zen lowered Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Saturday, August 2nd. JMP Securities decreased their price target on Redwood Trust from $7.50 to $7.00 and set a “market outperform” rating on the stock in a report on Thursday, July 31st. JPMorgan Chase & Co. lifted their price objective on shares of Redwood Trust from $5.50 to $6.00 and gave the stock a “neutral” rating in a research note on Thursday, May 1st. UBS Group cut their price objective on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating on the stock in a research report on Thursday, July 31st. Finally, Jones Trading reissued a “buy” rating and issued a $7.00 target price on shares of Redwood Trust in a research note on Friday, May 2nd.

Institutional Investors Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently modified their holdings of the business. Invesco Ltd. raised its holdings in Redwood Trust by 150.9% in the fourth quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust’s stock worth $13,031,000 after purchasing an additional 1,200,050 shares in the last quarter. LSV Asset Management lifted its holdings in shares of Redwood Trust by 58.9% during the 1st quarter. LSV Asset Management now owns 1,772,345 shares of the real estate investment trust’s stock valued at $10,758,000 after purchasing an additional 657,141 shares during the last quarter. Jane Street Group LLC purchased a new stake in shares of Redwood Trust during the 1st quarter valued at $2,018,000. Nuveen LLC acquired a new stake in shares of Redwood Trust in the 1st quarter worth $1,983,000. Finally, Balyasny Asset Management L.P. increased its position in Redwood Trust by 19.2% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust’s stock valued at $13,023,000 after buying an additional 321,612 shares in the last quarter. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Redwood Trust Price Performance

RWT stock opened at $5.9750 on Wednesday. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $8.15. The firm has a market capitalization of $772.09 million, a P/E ratio of -9.34 and a beta of 1.31. The company has a fifty day simple moving average of $5.87 and a two-hundred day simple moving average of $5.94. The company has a quick ratio of 40.39, a current ratio of 40.39 and a debt-to-equity ratio of 20.00.

Redwood Trust (NYSE:RWT) last announced its earnings results on Wednesday, July 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.01). The business had revenue of ($38.10) million for the quarter, compared to analysts’ expectations of $31.00 million. Redwood Trust had a negative net margin of 6.93% and a positive return on equity of 8.70%. Analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Announces Dividend

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 $0.18 dividend. The ex-dividend date of this dividend was Monday, June 23rd. This represents a $0.72 annualized dividend and a yield of 12.1%. Redwood Trust’s dividend payout ratio (DPR) is presently -112.50%.

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.