Redwood Trust (NYSE:RWT) Share Price Passes Above 200-Day Moving Average – What’s Next?

Redwood Trust, Inc. (NYSE:RWT) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $5.72 and traded as high as $6.00. Redwood Trust shares last traded at $5.9250, with a volume of 1,264,017 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently commented on RWT. JPMorgan Chase & Co. raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price objective for the company in a research note on Friday, January 23rd. JonesTrading decreased their price target on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research report on Thursday, October 30th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Thursday, January 22nd. Wall Street Zen upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. Finally, Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Redwood Trust presently has a consensus rating of “Moderate Buy” and an average target price of $6.96.

Redwood Trust Price Performance

The firm has a market capitalization of $750.58 million, a price-to-earnings ratio of -9.71 and a beta of 1.59. The stock’s fifty day moving average price is $5.78 and its two-hundred day moving average price is $5.72. The company has a current ratio of 57.77, a quick ratio of 57.77 and a debt-to-equity ratio of 22.68.

Redwood Trust (NYSE:RWT) last issued its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.11. The firm had revenue of $87.30 million during the quarter, compared to the consensus estimate of $24.88 million. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.80%. Equities research analysts expect that Redwood Trust, Inc. will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Tuesday, December 23rd were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 12.2%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is -118.03%.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds have recently added to or reduced their stakes in RWT. Vident Advisory LLC raised its holdings in Redwood Trust by 4.7% during the fourth quarter. Vident Advisory LLC now owns 39,606 shares of the real estate investment trust’s stock worth $219,000 after purchasing an additional 1,773 shares in the last quarter. Intech Investment Management LLC raised its stake in Redwood Trust by 1.4% during the 2nd quarter. Intech Investment Management LLC now owns 151,270 shares of the real estate investment trust’s stock worth $894,000 after acquiring an additional 2,033 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in Redwood Trust by 7.8% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 34,177 shares of the real estate investment trust’s stock valued at $202,000 after acquiring an additional 2,464 shares during the last quarter. Inceptionr LLC boosted its stake in Redwood Trust by 10.7% in the third quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust’s stock valued at $153,000 after acquiring an additional 2,560 shares in the last quarter. Finally, Rhumbline Advisers boosted its stake in Redwood Trust by 0.8% in the third quarter. Rhumbline Advisers now owns 392,058 shares of the real estate investment trust’s stock valued at $2,270,000 after acquiring an additional 3,147 shares in 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.