Redwood Trust, Inc. (NYSE:RWT) Stock Has Consensus Price Target of $5.25 According to Analysts

Redwood Trust, Inc. (NYSE:RWT) has earned an average rating of “Hold” from the eleven ratings firms that are covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, two have given a hold recommendation and seven have assigned a buy recommendation to the company. The average 12 month price target among analysts that have covered the stock in the last year is $5.25.

RWT has been the subject of several research reports. Citigroup reiterated a “market outperform” rating on shares of Redwood Trust in a research note on Thursday, October 15th. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Monday, September 21st. Citizens Jmp dropped their price objective on shares of Redwood Trust from $6.00 to $4.00 and set a “market outperform” rating on the stock in a research note on Thursday, October 15th. UBS Group dropped their price objective on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating on the stock in a research note on Friday, August 21st. Finally, BTIG Research cut their price objective on shares of Redwood Trust from $6.00 to $5.00 and set a “buy” rating on the stock in a report on Tuesday, October 6th.

Redwood Trust Price Performance

Shares of RWT stock opened at $3.22 on Tuesday. The stock has a market cap of $404.97 million, a price-to-earnings ratio of -80.58 and a beta of 1.45. The business’s fifty day moving average is $3.90 and its 200 day moving average is $5.06. Redwood Trust has a twelve month low of $2.88 and a twelve month high of $6.97. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The business had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%. Research analysts expect that Redwood Trust will post 0.96 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 22.3%. The ex-dividend date of this dividend was Wednesday, September 23rd. Redwood Trust’s payout ratio is currently -1,800.00%.

Insider Buying and Selling

In related news, CEO Christopher J. Abate acquired 100,000 shares of Redwood Trust stock in a transaction that occurred on Tuesday, September 15th. The stock was bought at an average price of $3.84 per share, with a total value of $384,000.00. Following the transaction, the chief executive officer directly owned 679,283 shares in the company, valued at approximately $2,608,446.72. This represents a 17.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Brooke Carillo acquired 26,065 shares of the stock in a transaction on Tuesday, September 15th. The shares were bought at an average price of $3.85 per share, with a total value of $100,350.25. Following the purchase, the chief financial officer directly owned 140,481 shares of the company’s stock, valued at $540,851.85. The trade was a 22.78% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders bought 244,171 shares of company stock valued at $948,402. 3.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Redwood Trust

A number of institutional investors have recently modified their holdings of the stock. State Street Corp increased its holdings in shares of Redwood Trust by 5.1% during the second quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust’s stock valued at $24,727,000 after acquiring an additional 254,399 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in Redwood Trust by 0.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock worth $3,385,000 after purchasing an additional 2,627 shares in the last quarter. Bank of America Corp DE bought a new position in Redwood Trust in the 2nd quarter worth about $2,032,000. Quantinno Capital Management LP grew its position in Redwood Trust by 22.7% during the 1st quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock valued at $2,098,000 after purchasing an additional 69,173 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in Redwood Trust during the 2nd quarter valued at about $1,349,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc is a specialty finance company and real estate investment trust headquartered in Mill Valley, California. Founded in 1994 and traded on the New York Stock Exchange under the symbol RWT, the company focuses on investing in and financing residential real estate credit.

Redwood Trust’s activities include acquiring, originating, securitizing and managing residential mortgage loans and related assets. Its portfolio has historically included jumbo and other non-agency residential mortgages, mortgage-backed securities, mortgage servicing rights and other residential credit investments.