Redwood Trust, Inc. (NYSE:RWT) Receives Average Recommendation of “Hold” from Brokerages

Shares of Redwood Trust, Inc. (NYSE:RWT) have been given a consensus rating of “Hold” by the seven brokerages that are currently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $6.75.

RWT has been the topic of a number of analyst reports. Jones Trading decreased their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th. BTIG Research reissued a “buy” rating and set a $8.50 price target on shares of Redwood Trust in a research note on Friday, September 26th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, October 8th. Finally, UBS Group lifted their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a research report on Wednesday, September 3rd.

Redwood Trust Stock Down 0.9%

RWT opened at $5.74 on Tuesday. The firm has a market cap of $726.51 million, a P/E ratio of -7.08 and a beta of 1.59. The business’s fifty day simple moving average is $5.45 and its 200 day simple moving average is $5.75. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.73. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73.

Redwood Trust (NYSE:RWT) last released its earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.04. The company had revenue of $54.37 million for the quarter, compared to analyst estimates of $31.04 million. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 9.19%. As a group, equities research analysts anticipate that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Tuesday, December 23rd will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Tuesday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.6%. Redwood Trust’s dividend payout ratio is currently -88.89%.

Institutional Investors Weigh In On Redwood Trust

A number of institutional investors have recently bought and sold shares of RWT. Charles Schwab Investment Management Inc. raised its stake in Redwood Trust by 2.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,447,700 shares of the real estate investment trust’s stock worth $8,788,000 after purchasing an additional 36,547 shares during the period. Nuveen LLC acquired a new stake in shares of Redwood Trust during the 1st quarter worth $1,983,000. Quantbot Technologies LP purchased a new position in shares of Redwood Trust in the 1st quarter worth $37,000. AlphaQuest LLC raised its position in shares of Redwood Trust by 165.5% in the 1st quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock worth $52,000 after buying an additional 5,354 shares during the period. Finally, Ceredex Value Advisors LLC boosted its holdings in Redwood Trust by 24.4% in the first quarter. Ceredex Value Advisors LLC now owns 1,479,950 shares of the real estate investment trust’s stock valued at $8,983,000 after acquiring an additional 289,900 shares during the last quarter. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.