Redwood Trust (NYSE:RWT) Stock Gets Price Target Trim from Citizens Jmp

Redwood Trust (NYSE:RWT) had its price objective trimmed by Citizens Jmp from $6.00 to $4.00 in a report published on Thursday morning,Benzinga reports. The firm currently has a market outperform rating on the real estate investment trust’s stock.

A number of other equities research analysts also recently issued reports on the company. JonesTrading lowered their price target on Redwood Trust from $6.25 to $6.00 and set a “buy” rating for the company in a research report on Tuesday, July 28th. UBS Group dropped their price target 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. BTIG Research cut their target price on Redwood Trust from $6.00 to $5.00 and set a “buy” rating on the stock in a research report on Tuesday, October 6th. JPMorgan Chase & Co. cut their target price 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. Finally, Piper Sandler reduced their price objective on Redwood Trust from $5.25 to $3.75 and set a “neutral” rating on the stock in a research note on Friday, October 9th. Seven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Redwood Trust has a consensus rating of “Hold” and an average target price of $5.25.

Redwood Trust Stock Performance

NYSE RWT opened at $3.04 on Thursday. The business has a 50 day moving average price of $4.06 and a 200 day moving average price of $4.83. The company has a market capitalization of $382.49 million, a P/E ratio of -76.11 and a beta of 1.45. Redwood Trust has a 1-year low of $2.91 and a 1-year high of $6.97. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49.

Redwood Trust (NYSE:RWT) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $56.01 million for 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%. Sell-side analysts expect that Redwood Trust will post 1.01 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd were paid a $0.18 dividend. The ex-dividend date was Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 23.6%. Redwood Trust’s dividend payout ratio (DPR) is presently -1,800.00%.

Insider Activity at Redwood Trust

In related news, CEO Christopher Abate bought 100,000 shares of Redwood Trust stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average price of $3.84 per share, for a total transaction of $384,000.00. Following the completion of the purchase, the chief executive officer 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 document filed with the SEC, which is accessible through this hyperlink. Also, Director Greg Kubicek purchased 50,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were acquired at an average price of $3.85 per share, for a total transaction of $192,500.00. Following the purchase, the director directly owned 127,185 shares of the company’s stock, valued at approximately $489,662.25. This represents a 64.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 244,171 shares of company stock valued at $948,402 in the last 90 days. 3.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Redwood Trust

Large investors have recently made changes to their positions in the company. Optiver Holding B.V. raised its holdings in Redwood Trust by 2,034.5% in the first quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust’s stock worth $60,000 after purchasing an additional 10,274 shares during the period. Quotient Wealth Partners LLC bought a new position in Redwood Trust in the first quarter valued at $76,000. Evanson Financial LLC bought a new position in shares of Redwood Trust in the 2nd quarter valued at about $66,000. Janney Montgomery Scott LLC increased its position in shares of Redwood Trust by 18.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 15,113 shares of the real estate investment trust’s stock worth $85,000 after purchasing an additional 2,363 shares during the last quarter. Finally, Range Financial Group LLC bought a new position in shares of Redwood Trust in the 1st quarter valued at about $86,000. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE: RWT) is a specialty finance company focused on housing credit and residential real estate finance. Organized as a real estate investment trust, the company invests in and manages residential credit assets, including mortgage loans and mortgage-related securities, with an emphasis on assets that are not typically financed through traditional government-sponsored mortgage programs.

Redwood operates through several business platforms. Its residential mortgage banking activities include acquiring and financing prime jumbo loans and other residential mortgages, which may be held for investment or placed into private-label securitizations.