Analysts Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $7.17

Redwood Trust, Inc. (NYSE:RWT) has earned an average rating of “Buy” from the six ratings firms that are presently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $7.17.

RWT has been the subject of a number of research analyst reports. Credit Suisse Group lifted their price objective on shares of Redwood Trust from $8.00 to $9.00 and gave the stock an “outperform” rating in a research report on Monday, September 21st. Zacks Investment Research raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Tuesday, August 11th. Piper Sandler upped their price objective on shares of Redwood Trust from $5.50 to $7.50 and gave the stock a “neutral” rating in a research report on Friday, June 26th. ValuEngine downgraded Redwood Trust from a “buy” rating to a “hold” rating in a research note on Thursday, August 13th. Finally, Raymond James reissued a “buy” rating on shares of Redwood Trust in a research note on Friday, August 21st.

Several institutional investors have recently made changes to their positions in the company. Envestnet Asset Management Inc. increased its position in shares of Redwood Trust by 20.7% during the 3rd quarter. Envestnet Asset Management Inc. now owns 25,461 shares of the real estate investment trust’s stock valued at $191,000 after purchasing an additional 4,359 shares during the last quarter. Schonfeld Strategic Advisors LLC increased its position in shares of Redwood Trust by 27.3% during the 2nd quarter. Schonfeld Strategic Advisors LLC now owns 71,900 shares of the real estate investment trust’s stock valued at $503,000 after purchasing an additional 15,400 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of Redwood Trust by 0.4% during the 2nd quarter. Principal Financial Group Inc. now owns 870,763 shares of the real estate investment trust’s stock valued at $6,096,000 after purchasing an additional 3,552 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Redwood Trust by 12.4% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 1,085,220 shares of the real estate investment trust’s stock worth $7,597,000 after acquiring an additional 119,617 shares during the last quarter. Finally, Orion Portfolio Solutions LLC purchased a new stake in Redwood Trust in the 2nd quarter worth about $38,000. 77.79% of the stock is owned by hedge funds and other institutional investors.

Shares of RWT stock opened at $8.21 on Thursday. The company has a debt-to-equity ratio of 9.18, a quick ratio of 11.32 and a current ratio of 11.32. Redwood Trust has a 52 week low of $2.14 and a 52 week high of $18.01. The company has a market capitalization of $943.70 million, a P/E ratio of -1.25 and a beta of 1.14. The company’s 50 day moving average price is $7.54 and its two-hundred day moving average price is $6.13.

Redwood Trust (NYSE:RWT) last issued its earnings results on Thursday, July 30th. The real estate investment trust reported $1.00 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.33 by $0.67. The business had revenue of $27.00 million for the quarter, compared to the consensus estimate of $36.20 million. Redwood Trust had a negative net margin of 103.58% and a positive return on equity of 3.41%. During the same period in the previous year, the company earned $0.39 earnings per share. Analysts forecast that Redwood Trust will post -0.34 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 22nd were given a $0.14 dividend. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.13. This represents a $0.56 dividend on an annualized basis and a yield of 6.82%. The ex-dividend date was Monday, September 21st. Redwood Trust’s dividend payout ratio is presently 35.44%.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through four segments: Residential Lending, Business Purpose Lending, Multifamily Investments, and Third-Party Residential Investments. The Residential Lending segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.

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