Redwood Trust (NYSE:RWT) Cut to “Hold” at Zacks Research

Zacks Research cut shares of Redwood Trust (NYSE:RWT) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

A number of other analysts have also recently weighed in on RWT. Wall Street Zen cut Redwood Trust from a “hold” rating to a “sell” rating in a research note on Monday, April 6th. JPMorgan Chase & Co. upgraded Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a research note on Friday, January 23rd. Citigroup restated a “market perform” rating on shares of Redwood Trust in a research note on Wednesday, February 18th. Keefe, Bruyette & Woods raised their price target 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. Finally, Piper Sandler cut their price target on Redwood Trust from $6.50 to $6.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $6.82.

Redwood Trust Stock Up 0.1%

Redwood Trust stock opened at $6.06 on Monday. Redwood Trust has a 1-year low of $5.00 and a 1-year high of $6.97. The company has a debt-to-equity ratio of 24.34, a current ratio of 55.15 and a quick ratio of 55.15. The stock has a market cap of $757.38 million, a PE ratio of -9.93 and a beta of 1.52. The stock’s fifty day moving average is $5.88 and its two-hundred day moving average is $5.67.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. 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 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 24th were given a dividend of $0.18 per share. The ex-dividend date was Tuesday, March 24th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.9%. Redwood Trust’s payout ratio is -118.03%.

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Corient Private Wealth LLC increased its position in shares of Redwood Trust by 74.5% during the fourth quarter. Corient Private Wealth LLC now owns 19,658 shares of the real estate investment trust’s stock worth $109,000 after purchasing an additional 8,390 shares in the last quarter. TMB Capital Partners LLC acquired a new stake in shares of Redwood Trust during the fourth quarter worth about $64,000. Invesco Ltd. increased its position in shares of Redwood Trust by 25.4% during the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock worth $14,107,000 after purchasing an additional 516,630 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its position in shares of Redwood Trust by 40.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,625 shares of the real estate investment trust’s stock worth $120,000 after purchasing an additional 6,281 shares in the last quarter. Finally, Vident Advisory LLC increased its position in shares of 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. Institutional investors and hedge funds own 74.34% of the company’s stock.

About Redwood Trust

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.