Redwood Trust (NYSE:RWT) Releases Earnings Results, Misses Estimates By $0.03 EPS

Redwood Trust (NYSE:RWT) released its quarterly earnings results on Thursday. The real estate investment trust reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03), Zacks reports. Redwood Trust had a net margin of 9.35% and a return on equity of 6.01%.

Redwood Trust Stock Performance

NYSE RWT traded up $0.02 during midday trading on Thursday, hitting $6.46. The company had a trading volume of 669,828 shares, compared to its average volume of 791,093. The firm has a fifty day simple moving average of $6.59 and a two-hundred day simple moving average of $7.10. The stock has a market cap of $856.34 million, a price-to-earnings ratio of 11.75 and a beta of 1.57. Redwood Trust has a fifty-two week low of $5.45 and a fifty-two week high of $8.15. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.55.

Redwood Trust Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Monday, December 23rd were given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 11.14%. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.17. The ex-dividend date was Monday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is currently 130.91%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on RWT shares. StockNews.com upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th. JMP Securities lowered their target price on shares of Redwood Trust from $9.00 to $8.00 and set a “market outperform” rating on the stock in a research note on Thursday, January 23rd. Finally, JPMorgan Chase & Co. lowered their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 21st. Five research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $7.84.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.