Redwood Trust (NYSE:RWT) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Redwood Trust (NYSE:RWT) from a hold rating to a strong sell rating in a report published on Tuesday,Zacks.com reports.

A number of other analysts also recently weighed in on RWT. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, June 24th. Piper Sandler dropped their price objective on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating on the stock in a research note on Thursday, July 2nd. BTIG Research cut their target price on Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. Keefe, Bruyette & Woods raised Redwood Trust from a “market perform” rating to an “outperform” rating and decreased their target price for the stock from $7.00 to $6.00 in a research note on Thursday, July 9th. Finally, Wall Street Zen upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $6.11.

Redwood Trust Stock Performance

Shares of NYSE RWT opened at $4.91 on Tuesday. The stock has a 50 day moving average price of $5.08 and a 200 day moving average price of $5.53. Redwood Trust has a 52 week low of $4.19 and a 52 week high of $6.97. The company has a debt-to-equity ratio of 28.42, a quick ratio of 59.63 and a current ratio of 59.63. The stock has a market capitalization of $614.20 million, a PE ratio of -6.29 and a beta of 1.37.

Redwood Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 23rd were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 14.7%. The ex-dividend date was Tuesday, June 23rd. Redwood Trust’s dividend payout ratio (DPR) is currently -92.31%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Clearstead Advisors LLC raised its position in shares of Redwood Trust by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 3,572 shares during the last quarter. Russell Investments Group Ltd. grew its stake in Redwood Trust by 331.8% during the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 6,082 shares in the last quarter. Westbourne Investments Inc. purchased a new position in Redwood Trust during the fourth quarter valued at $55,000. Bank of Marin bought a new stake in Redwood Trust in the 4th quarter valued at $58,000. Finally, Abel Hall LLC bought a new stake in Redwood Trust in the 4th quarter valued at $58,000. 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.