Redwood Trust (NYSE:RWT) Hits New 1-Year Low – Here’s What Happened

Redwood Trust, Inc. (NYSE:RWT) hit a new 52-week low during trading on Monday . The stock traded as low as $4.39 and last traded at $4.3750, with a volume of 373265 shares trading hands. The stock had previously closed at $4.48.

Analysts Set New Price Targets

A number of research firms have weighed in on RWT. Piper Sandler decreased their price target on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research note on Thursday. Zacks Research downgraded Redwood Trust from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. BTIG Research decreased their target price on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating for the company in a research note on Wednesday, June 17th. JonesTrading restated a “buy” rating and set a $6.25 target price on shares of Redwood Trust in a report on Thursday, April 30th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, June 24th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Redwood Trust presently has an average rating of “Hold” and an average target price of $6.39.

Redwood Trust Price Performance

The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42. The firm has a market capitalization of $537.82 million, a price-to-earnings ratio of -5.49 and a beta of 1.37. The company’s 50 day moving average is $5.23 and its 200-day moving average is $5.59.

Redwood Trust Announces Dividend

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 16.8%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -92.31%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Clearstead Advisors LLC raised its stake in Redwood Trust by 192.5% in the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after acquiring an additional 3,572 shares during the period. Russell Investments Group Ltd. boosted its position 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 worth $47,000 after purchasing an additional 6,082 shares during the period. Westbourne Investments Inc. acquired a new position in shares of Redwood Trust in the fourth quarter valued at $55,000. Bank of Marin acquired a new position in shares of Redwood Trust in the fourth quarter valued at $58,000. Finally, Abel Hall LLC bought a new position in shares of Redwood Trust in the fourth quarter valued at about $58,000. 74.34% of the stock is currently owned by institutional investors.

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.