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

Redwood Trust (NYSE:RWT) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

A number of other research analysts also recently weighed in on the company. Keefe, Bruyette & Woods lifted their price target on Redwood Trust from $5.75 to $7.00 and gave the company a “market perform” rating in a report on Wednesday, February 18th. Piper Sandler decreased their price objective on Redwood Trust from $6.50 to $6.00 and set a “neutral” rating for the company in a research report on Thursday. Zacks Research raised Redwood Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. JonesTrading reiterated a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a report on Tuesday, March 3rd. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $6.82.

Redwood Trust Stock Down 0.3%

Shares of NYSE:RWT opened at $5.65 on Monday. The firm has a 50 day simple moving average of $5.84 and a 200 day simple moving average of $5.66. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.97. The company has a debt-to-equity ratio of 24.34, a quick ratio of 55.15 and a current ratio of 55.15. The company has a market cap of $705.63 million, a PE ratio of -9.25 and a beta of 1.52.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data 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). The firm had revenue of $140.33 million for the quarter, compared to analysts’ expectations of $24.88 million. Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%. As a group, research analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RWT. Corient Private Wealth LLC raised its stake in shares of Redwood Trust by 74.5% during the 4th 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 bought a new stake in shares of Redwood Trust in the 4th quarter valued at approximately $64,000. Invesco Ltd. increased its holdings in Redwood Trust by 25.4% in the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock worth $14,107,000 after buying an additional 516,630 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in Redwood Trust by 40.9% in 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 buying an additional 6,281 shares during the last quarter. Finally, Vident Advisory LLC raised its position 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 valued at $219,000 after acquiring an additional 1,773 shares in the last quarter. Hedge funds and other institutional investors 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.