Raymond James began coverage on shares of Redwood Trust (NYSE:RWT) in a research note issued to investors on Friday, The Fly reports. The brokerage issued an outperform rating and a $18.50 price target on the real estate investment trust’s stock.
A number of other research analysts also recently weighed in on RWT. Zacks Investment Research downgraded Redwood Trust from a strong-buy rating to a hold rating in a report on Wednesday. ValuEngine downgraded Redwood Trust from a hold rating to a sell rating in a report on Tuesday, September 18th. Finally, Compass Point assumed coverage on Redwood Trust in a report on Tuesday, July 24th. They issued a neutral rating and a $18.00 target price on the stock. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company’s stock. Redwood Trust presently has an average rating of Hold and an average target price of $17.88.
RWT stock traded down $0.06 during trading on Friday, reaching $15.80. The stock had a trading volume of 808,880 shares, compared to its average volume of 740,968. Redwood Trust has a 52 week low of $14.29 and a 52 week high of $17.50. The company has a debt-to-equity ratio of 3.82, a quick ratio of 3.74 and a current ratio of 3.74. The company has a market cap of $1.35 billion, a price-to-earnings ratio of 11.37 and a beta of 0.68.
Redwood Trust (NYSE:RWT) last posted its earnings results on Tuesday, August 7th. The real estate investment trust reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.02. Redwood Trust had a return on equity of 12.65% and a net margin of 37.60%. The company had revenue of $55.00 million for the quarter. During the same period in the prior year, the company posted $0.35 EPS. Equities analysts predict that Redwood Trust will post 1.78 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Friday, September 14th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 7.59%. The ex-dividend date of this dividend was Thursday, September 13th. Redwood Trust’s payout ratio is 86.33%.
A number of institutional investors and hedge funds have recently modified their holdings of RWT. SG Americas Securities LLC purchased a new stake in Redwood Trust in the first quarter worth about $148,000. Schwab Charles Investment Management Inc. increased its position in Redwood Trust by 7.3% in the first quarter. Schwab Charles Investment Management Inc. now owns 618,397 shares of the real estate investment trust’s stock worth $9,567,000 after buying an additional 42,122 shares in the last quarter. Northern Trust Corp increased its position in Redwood Trust by 1.8% in the first quarter. Northern Trust Corp now owns 935,644 shares of the real estate investment trust’s stock worth $14,475,000 after buying an additional 16,564 shares in the last quarter. Russell Investments Group Ltd. increased its position in Redwood Trust by 6.1% in the first quarter. Russell Investments Group Ltd. now owns 94,425 shares of the real estate investment trust’s stock worth $1,461,000 after buying an additional 5,466 shares in the last quarter. Finally, Susquehanna Fundamental Investments LLC purchased a new stake in Redwood Trust in the first quarter worth about $332,000. Institutional investors and hedge funds own 80.82% of the company’s stock.
Redwood Trust Company Profile
Redwood Trust, Inc, together with its subsidiaries, engages in mortgage banking activities 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, and issued by third parties and other credit risk-related investments; and invests in residential loans held for investment and mortgage servicing rights associated with residential loans.
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