Redwood Trust (NYSE:RWT) Given “Buy” Rating at JonesTrading

JonesTrading reaffirmed their buy rating on shares of Redwood Trust (NYSE:RWT) in a report published on Tuesday morning,Benzinga reports. They currently have a $6.25 target price on the real estate investment trust’s stock.

Other equities research analysts also recently issued reports about the stock. Citigroup restated a “market perform” rating on shares of Redwood Trust in a research note on Wednesday, February 18th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research report on Sunday, February 15th. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. Keefe, Bruyette & Woods increased 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, Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $6.96.

Redwood Trust Price Performance

Shares of RWT stock opened at $6.00 on Tuesday. The stock’s 50-day moving average is $5.80 and its 200 day moving average is $5.73. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $6.97. The company has a debt-to-equity ratio of 22.68, a current ratio of 57.77 and a quick ratio of 57.77. The company has a market cap of $749.94 million, a P/E ratio of -9.84 and a beta of 1.55.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.80%. The firm had revenue of $86.86 million for the quarter, compared to analysts’ expectations of $24.88 million. Research analysts predict that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were issued a dividend of $0.18 per share. The ex-dividend date of this dividend was Tuesday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.0%. Redwood Trust’s payout ratio is -118.03%.

Hedge Funds Weigh In On Redwood Trust

A number of institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP grew its position in shares of Redwood Trust by 0.5% during the fourth quarter. Wellington Management Group LLP now owns 15,101,012 shares of the real estate investment trust’s stock worth $83,509,000 after buying an additional 80,529 shares in the last quarter. UBS Group AG lifted its stake in Redwood Trust by 521.1% in the fourth quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock worth $21,430,000 after acquiring an additional 3,251,302 shares during the last quarter. Geode Capital Management LLC grew its holdings in Redwood Trust by 2.6% during the 2nd quarter. Geode Capital Management LLC now owns 3,176,277 shares of the real estate investment trust’s stock worth $18,773,000 after acquiring an additional 80,206 shares in the last quarter. Boston Partners increased its position in shares of Redwood Trust by 2.0% in the 2nd quarter. Boston Partners now owns 2,750,890 shares of the real estate investment trust’s stock valued at $16,117,000 after purchasing an additional 54,209 shares during the last quarter. Finally, Invesco Ltd. increased its position in shares of Redwood Trust by 25.4% in the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock valued at $14,107,000 after purchasing an additional 516,630 shares during the last quarter. 74.34% of the stock is owned by hedge funds and other institutional investors.

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.