Redwood Trust (NYSE:RWT) Price Target Increased to $7.00 by Analysts at Wedbush

Redwood Trust (NYSE:RWT) had its target price upped by Wedbush from $6.50 to $7.00 in a research note issued to investors on Friday morning, Benzinga reports. The brokerage currently has a neutral rating on the real estate investment trust’s stock. Wedbush also issued estimates for Redwood Trust’s Q3 2024 earnings at $0.14 EPS.

Several other equities analysts have also issued reports on RWT. JPMorgan Chase & Co. lifted their price target on Redwood Trust from $7.00 to $7.50 and gave the company an overweight rating in a research note on Tuesday, July 16th. JMP Securities boosted their price objective on Redwood Trust from $8.00 to $8.50 and gave the company a market outperform rating in a research note on Friday, July 19th. Finally, Keefe, Bruyette & Woods decreased their target price on Redwood Trust from $7.75 to $7.25 and set an outperform rating for the company in a research report on Wednesday, April 10th. Four equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Redwood Trust currently has a consensus rating of Moderate Buy and a consensus price target of $7.81.

Redwood Trust Trading Up 2.6 %

Shares of Redwood Trust stock traded up $0.18 during trading hours on Friday, hitting $7.01. The company’s stock had a trading volume of 729,585 shares, compared to its average volume of 1,228,581. The company has a debt-to-equity ratio of 12.26, a current ratio of 9.09 and a quick ratio of 9.09. The company has a market capitalization of $926.37 million, a PE ratio of 97.57 and a beta of 1.58. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.30. The stock has a 50 day moving average of $6.72 and a 200 day moving average of $6.44.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a return on equity of 4.86% and a net margin of 5.94%. During the same period in the previous year, the business earned $0.14 earnings per share. Analysts predict that Redwood Trust will post 0.49 earnings per share for the current year.

Redwood Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 21st were paid a $0.16 dividend. The ex-dividend date of this dividend was Friday, June 21st. This represents a $0.64 annualized dividend and a dividend yield of 9.13%. Redwood Trust’s dividend payout ratio (DPR) is 914.29%.

Insider Buying and Selling

In related news, CFO Brooke Carillo acquired 15,000 shares of the company’s stock in a transaction on Thursday, May 30th. The stock was acquired at an average price of $6.25 per share, with a total value of $93,750.00. Following the acquisition, the chief financial officer now directly owns 56,772 shares of the company’s stock, valued at $354,825. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. 2.50% of the stock is currently owned by insiders.

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Redwood Trust by 19.5% during the first quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after acquiring an additional 2,530,937 shares during the period. Wellington Management Group LLP boosted its stake in Redwood Trust by 164.4% in the fourth quarter. Wellington Management Group LLP now owns 11,314,715 shares of the real estate investment trust’s stock valued at $83,842,000 after acquiring an additional 7,035,524 shares in the last quarter. Clearbridge Investments LLC boosted its stake in Redwood Trust by 2.1% in the first quarter. Clearbridge Investments LLC now owns 1,846,227 shares of the real estate investment trust’s stock valued at $11,760,000 after acquiring an additional 37,514 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of Redwood Trust by 7.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,798,260 shares of the real estate investment trust’s stock worth $13,325,000 after buying an additional 127,435 shares during the period. Finally, Mesirow Institutional Investment Management Inc. acquired a new stake in shares of Redwood Trust during the fourth quarter worth $13,246,000. 74.34% of the stock is 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 three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.