Brokerages Set Redwood Trust, Inc. (NYSE:RWT) PT at $8.19

Shares of Redwood Trust, Inc. (NYSE:RWT) have received a consensus recommendation of “Moderate Buy” from the nine analysts that are currently covering the company, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $8.19.

Several brokerages recently weighed in on RWT. Wedbush raised their price objective on shares of Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a research report on Friday, August 2nd. JMP Securities lifted their price objective on shares of Redwood Trust from $8.50 to $9.00 and gave the company a “market outperform” rating in a research note on Friday, October 4th. JPMorgan Chase & Co. raised their target price on Redwood Trust from $7.50 to $8.00 and gave the company an “overweight” rating in a report on Thursday, October 17th. Piper Sandler upped their price target on Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research note on Monday, August 5th. Finally, Raymond James raised their price objective on Redwood Trust from $8.50 to $9.50 and gave the company a “strong-buy” rating in a research note on Thursday, September 19th.

Redwood Trust Trading Up 0.4 %

NYSE RWT opened at $7.64 on Thursday. 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 has a 1-year low of $5.45 and a 1-year high of $8.15. The firm’s fifty day simple moving average is $7.59 and its 200-day simple moving average is $6.93. The company has a market capitalization of $1.01 billion, a PE ratio of 109.14 and a beta of 1.58.

Redwood Trust (NYSE:RWT) last posted 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 return on equity of 4.93% and a net margin of 4.45%. During the same quarter in the prior year, the firm posted $0.14 earnings per share. As a group, sell-side analysts anticipate that Redwood Trust will post 0.52 earnings per share for the current fiscal year.

Redwood Trust Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Monday, September 23rd were issued a $0.17 dividend. The ex-dividend date of this dividend was Monday, September 23rd. This is an increase from Redwood Trust’s previous quarterly dividend of $0.16. This represents a $0.68 dividend on an annualized basis and a yield of 8.90%. Redwood Trust’s dividend payout ratio is 971.43%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in Redwood Trust by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 12,973,503 shares of the real estate investment trust’s stock valued at $96,134,000 after acquiring an additional 78,222 shares during the period. Quadrature Capital Ltd raised its stake in shares of Redwood Trust by 122.8% in the fourth quarter. Quadrature Capital Ltd now owns 40,374 shares of the real estate investment trust’s stock valued at $299,000 after purchasing an additional 22,254 shares in the last quarter. State of Alaska Department of Revenue lifted its position in Redwood Trust by 9.8% in the first quarter. State of Alaska Department of Revenue now owns 80,107 shares of the real estate investment trust’s stock worth $510,000 after purchasing an additional 7,123 shares during the period. Insight Folios Inc boosted its stake in Redwood Trust by 4.6% during the first quarter. Insight Folios Inc now owns 89,028 shares of the real estate investment trust’s stock worth $567,000 after buying an additional 3,917 shares in the last quarter. Finally, Maryland State Retirement & Pension System boosted its stake in Redwood Trust by 9.9% during the first quarter. Maryland State Retirement & Pension System now owns 47,385 shares of the real estate investment trust’s stock worth $302,000 after buying an additional 4,268 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

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.