Redwood Trust (NYSE:RWT) Sets New 1-Year Low – What’s Next?

Redwood Trust, Inc. (NYSE:RWT)’s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $3.22 and last traded at $3.60, with a volume of 42842443 shares. The stock had previously closed at $4.26.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. JPMorgan Chase & Co. reduced their price objective on shares of Redwood Trust from $6.50 to $6.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. BTIG Research reiterated a “buy” rating and issued a $6.00 price target on shares of Redwood Trust in a report on Tuesday, July 28th. Wells Fargo & Company reduced their price target on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 29th. UBS Group lowered their price objective on Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research report on Friday, August 21st. Finally, Citizens Jmp dropped their target price on Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a research note on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Redwood Trust currently has an average rating of “Hold” and an average target price of $5.94.

Redwood Trust Stock Performance

The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The company has a market cap of $452.20 million, a PE ratio of -89.98 and a beta of 1.37. The stock’s 50 day simple moving average is $4.72 and its two-hundred day simple moving average is $5.23.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.02. The company had revenue of $56.01 million during the quarter, compared to analysts’ expectations of $89.45 million. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. As a group, research analysts anticipate that Redwood Trust, Inc. will post 1.03 earnings per share for the current year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd will be issued a $0.18 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 20.0%. Redwood Trust’s dividend payout ratio (DPR) is presently -1,800.00%.

Institutional Investors Weigh In On Redwood Trust

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Redwood Trust by 26.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock valued at $2,990,000 after purchasing an additional 103,893 shares in the last quarter. Jane Street Group LLC purchased a new position in Redwood Trust in the 1st quarter worth approximately $2,018,000. Strs Ohio acquired a new stake in Redwood Trust in the first quarter valued at approximately $149,000. XTX Topco Ltd raised its stake in shares of Redwood Trust by 35.4% during the second quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock valued at $86,000 after purchasing an additional 3,795 shares during the period. Finally, Russell Investments Group Ltd. raised its stake in shares of 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 purchasing an additional 6,082 shares during the period. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Company Profile

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.