Redwood Trust, Inc. (NYSE:RWT) Receives Average Rating of “Moderate Buy” from Analysts

Redwood Trust, Inc. (NYSE:RWT) has received a consensus rating of “Moderate Buy” from the nine research firms that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $7.81.

A number of analysts have recently weighed in on the stock. Wedbush upped their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a “neutral” rating in a research note on Friday, August 2nd. Piper Sandler increased their target price on shares of Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a research note on Monday, August 5th. JMP Securities raised their target price on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a report on Friday, July 19th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Redwood Trust from $7.00 to $7.50 and gave the stock an “overweight” rating in a research report on Tuesday, July 16th.

Insider Activity

In other Redwood Trust news, CFO Brooke Carillo purchased 15,000 shares of the stock in a transaction dated Thursday, May 30th. The shares were acquired at an average price of $6.25 per share, for a total transaction of $93,750.00. Following the completion of the acquisition, the chief financial officer now owns 56,772 shares of the company’s stock, valued at approximately $354,825. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.50% of the company’s stock.

Institutional Trading of Redwood Trust

Several institutional investors have recently made changes to their positions in RWT. Vanguard Group Inc. lifted its position in Redwood Trust by 19.5% in the 1st quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after buying an additional 2,530,937 shares in the last quarter. Wellington Management Group LLP grew 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 purchasing an additional 7,035,524 shares in the last quarter. Clearbridge Investments LLC increased its position in Redwood Trust by 2.1% in the 1st quarter. Clearbridge Investments LLC now owns 1,846,227 shares of the real estate investment trust’s stock worth $11,760,000 after purchasing an additional 37,514 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Redwood Trust by 7.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,798,260 shares of the real estate investment trust’s stock valued at $13,325,000 after buying an additional 127,435 shares during the last quarter. Finally, Mesirow Institutional Investment Management Inc. bought a new stake in shares of Redwood Trust in the 4th quarter valued at approximately $13,246,000. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Trading Up 1.0 %

Shares of NYSE:RWT opened at $7.07 on Friday. The company has a 50 day moving average of $6.82 and a 200-day moving average of $6.44. The firm has a market cap of $934.80 million, a P/E ratio of 101.00 and a beta of 1.58. Redwood Trust has a twelve month low of $5.45 and a twelve month high of $8.30. The company has a current ratio of 50.47, a quick ratio of 50.47 and a debt-to-equity ratio of 12.97.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a net margin of 4.45% and a return on equity of 4.93%. During the same period last year, the company posted $0.14 earnings per share. As a group, analysts anticipate that Redwood Trust will post 0.5 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Friday, June 21st were paid a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 9.05%. The ex-dividend date of this dividend was Friday, June 21st. Redwood Trust’s dividend payout ratio (DPR) is currently 914.29%.

Redwood Trust Company Profile

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.