Zacks Investment Research Downgrades Redwood Trust (NYSE:RWT) to Hold

Redwood Trust (NYSE:RWT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports.

According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “

Other analysts have also recently issued reports about the stock. ValuEngine upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research note on Monday, May 11th. Piper Sandler increased their target price on shares of Redwood Trust from $5.50 to $7.50 and gave the stock a “neutral” rating in a research note on Friday. JMP Securities lowered their target price on shares of Redwood Trust from $10.00 to $5.00 and set a “market outperform” rating on the stock in a research note on Friday, April 3rd. Raymond James increased their target price on shares of Redwood Trust from $7.00 to $8.00 and gave the stock an “outperform” rating in a research note on Friday, June 12th. Finally, Credit Suisse Group increased their target price on shares of Redwood Trust from $6.50 to $8.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $9.38.

Shares of RWT stock opened at $7.00 on Tuesday. The stock has a market capitalization of $793.48 million, a P/E ratio of -0.96 and a beta of 1.16. The company has a current ratio of 4.36, a quick ratio of 4.36 and a debt-to-equity ratio of 12.29. The firm’s 50 day moving average is $5.85 and its 200 day moving average is $10.77. Redwood Trust has a 12 month low of $2.14 and a 12 month high of $18.01.

In related news, Director Fred Matera purchased 13,000 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were purchased at an average price of $3.80 per share, with a total value of $49,400.00. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. 2.50% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of RWT. OCO Capital Partners L.P. bought a new position in shares of Redwood Trust in the 1st quarter worth $10,120,000. State Street Corp grew its holdings in shares of Redwood Trust by 47.6% during the 1st quarter. State Street Corp now owns 5,363,558 shares of the real estate investment trust’s stock valued at $27,175,000 after purchasing an additional 1,730,379 shares during the last quarter. Norges Bank bought a new position in shares of Redwood Trust during the 4th quarter valued at $23,036,000. Wolverine Asset Management LLC bought a new position in shares of Redwood Trust during the 1st quarter valued at $2,155,000. Finally, Kennedy Capital Management Inc. grew its holdings in shares of Redwood Trust by 98.7% during the 4th quarter. Kennedy Capital Management Inc. now owns 756,558 shares of the real estate investment trust’s stock valued at $12,513,000 after purchasing an additional 375,784 shares during the last quarter. 87.43% of the stock is currently owned by hedge funds and other institutional investors.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.

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