Insider Buying: Redwood Trust (NYSE:RWT) CEO Purchases $384,000.00 in Stock

Redwood Trust, Inc. (NYSE:RWT) CEO Christopher Abate purchased 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was bought at an average price of $3.84 per share, for a total transaction of $384,000.00. Following the purchase, the chief executive officer directly owned 679,283 shares in the company, valued at $2,608,446.72. The trade was a 17.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Redwood Trust Stock Up 1.7%

RWT stock opened at $3.96 on Friday. The business has a 50 day moving average of $4.63 and a 200 day moving average of $5.16. The firm has a market cap of $496.79 million, a PE ratio of -98.85 and a beta of 1.37. Redwood Trust, Inc. has a twelve month low of $3.22 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 released its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The business had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. On average, research analysts forecast that Redwood Trust, Inc. will post 1.03 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd will be given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 18.2%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio is -1,800.00%.

Analyst Upgrades and Downgrades

RWT has been the topic of several analyst reports. Keefe, Bruyette & Woods dropped their target price on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a research note on Monday. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, June 24th. JonesTrading decreased their price objective on shares of Redwood Trust from $6.25 to $6.00 and set a “buy” rating for the company in a report on Tuesday, July 28th. Zacks Research raised Redwood Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Finally, BTIG Research reiterated a “buy” rating and set a $6.00 target price on shares of Redwood Trust in a research note on Tuesday, July 28th. Six research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $5.84.

Institutional Trading of Redwood Trust

Large investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp lifted its position in Redwood Trust by 0.4% during the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock valued at $3,385,000 after purchasing an additional 2,627 shares during the period. Bank of America Corp DE raised its stake in Redwood Trust by 66.4% during the 1st quarter. Bank of America Corp DE now owns 395,286 shares of the real estate investment trust’s stock valued at $2,218,000 after buying an additional 157,795 shares during the last quarter. Quantinno Capital Management LP lifted its holdings in shares of 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 buying an additional 69,173 shares during the period. Legal & General Group Plc bought a new position in shares of Redwood Trust during the 2nd quarter valued at $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Redwood Trust by 7,932.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust’s stock worth $1,256,000 after buying an additional 261,759 shares during the last quarter. 74.34% of the stock is currently owned by institutional investors.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.