Wall Street Zen Downgrades Redwood Trust (NYSE:RWT) to Sell

Redwood Trust (NYSE:RWT) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

A number of other analysts have also weighed in on the stock. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price objective on the stock in a research note on Friday, January 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. JonesTrading reaffirmed a “buy” rating and issued a $6.25 price target on shares of Redwood Trust in a report on Tuesday, March 3rd. Citigroup reaffirmed a “market perform” rating on shares of Redwood Trust in a research report on Wednesday, February 18th. Finally, Keefe, Bruyette & Woods lifted their price objective on Redwood Trust from $5.75 to $7.00 and gave the company a “market perform” rating in a research note on Wednesday, February 18th. One investment 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 issued a Sell rating to the company. Based on data from MarketBeat, Redwood Trust presently has an average rating of “Moderate Buy” and an average target price of $6.96.

Redwood Trust Price Performance

Shares of NYSE RWT opened at $5.38 on Friday. The business’s 50 day moving average price is $5.90 and its 200 day moving average price is $5.72. The firm has a market cap of $671.82 million, a P/E ratio of -8.81 and a beta of 1.55. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.97. The company has a quick ratio of 55.15, a current ratio of 55.15 and a debt-to-equity ratio of 24.34.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%.The business had revenue of $140.33 million during the quarter, compared to analyst estimates of $24.88 million. On average, sell-side analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Institutional Trading of Redwood Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vident Advisory LLC boosted its stake in shares of Redwood Trust by 4.7% during the 4th quarter. Vident Advisory LLC now owns 39,606 shares of the real estate investment trust’s stock worth $219,000 after acquiring an additional 1,773 shares in the last quarter. Intech Investment Management LLC increased its stake in shares of Redwood Trust by 1.4% in the 2nd quarter. Intech Investment Management LLC now owns 151,270 shares of the real estate investment trust’s stock valued at $894,000 after purchasing an additional 2,033 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in shares of Redwood Trust by 7.8% in the 2nd 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 purchasing an additional 2,464 shares in the last quarter. Inceptionr LLC raised its holdings in Redwood Trust by 10.7% in the 3rd quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust’s stock worth $153,000 after purchasing an additional 2,560 shares during the period. Finally, Rhumbline Advisers raised its holdings in Redwood Trust by 0.8% in the 3rd quarter. Rhumbline Advisers now owns 392,058 shares of the real estate investment trust’s stock worth $2,270,000 after purchasing an additional 3,147 shares during the period. Institutional investors and hedge funds own 74.34% of the company’s stock.

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.