Shares of Redwood Trust, Inc. (NYSE:RWT) have been given an average recommendation of “Buy” by the seven analysts that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $17.80.
Several equities research analysts have weighed in on the stock. Zacks Investment Research upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research note on Thursday, April 18th. Nomura assumed coverage on shares of Redwood Trust in a research note on Wednesday, March 27th. They issued a “buy” rating and a $17.50 target price for the company. JMP Securities upgraded shares of Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 target price for the company in a research note on Monday, March 4th. Finally, Credit Suisse Group assumed coverage on shares of Redwood Trust in a research note on Tuesday, February 5th. They issued an “outperform” rating and a $18.00 target price for the company.
In other Redwood Trust news, Director Mariann H. Byerwalter sold 9,778 shares of the firm’s stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $15.81, for a total value of $154,590.18. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.50% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Cedar Wealth Management LLC raised its holdings in shares of Redwood Trust by 112.5% during the fourth quarter. Cedar Wealth Management LLC now owns 1,700 shares of the real estate investment trust’s stock worth $26,000 after purchasing an additional 900 shares during the last quarter. Truvestments Capital LLC purchased a new position in shares of Redwood Trust during the first quarter worth $28,000. Legacy Bridge LLC purchased a new position in shares of Redwood Trust during the first quarter worth $32,000. Bank of Montreal Can raised its holdings in shares of Redwood Trust by 195.1% during the fourth quarter. Bank of Montreal Can now owns 2,526 shares of the real estate investment trust’s stock worth $38,000 after purchasing an additional 1,670 shares during the last quarter. Finally, Cutler Group LP purchased a new position in shares of Redwood Trust during the fourth quarter worth $49,000. 82.64% of the stock is owned by hedge funds and other institutional investors.
Shares of RWT opened at $16.20 on Thursday. The company has a market capitalization of $1.57 billion, a price-to-earnings ratio of 9.10 and a beta of 0.65. Redwood Trust has a twelve month low of $14.29 and a twelve month high of $17.50. The company has a debt-to-equity ratio of 5.30, a current ratio of 4.25 and a quick ratio of 4.25.
Redwood Trust (NYSE:RWT) last announced its earnings results on Wednesday, May 8th. The real estate investment trust reported $0.36 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.02). The firm had revenue of $32.00 million during the quarter, compared to analyst estimates of $44.20 million. Redwood Trust had a net margin of 24.71% and a return on equity of 10.86%. Redwood Trust’s revenue was down 8.6% on a year-over-year basis. During the same quarter last year, the business earned $0.60 earnings per share. On average, equities analysts predict that Redwood Trust will post 1.46 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 7.41%. Redwood Trust’s dividend payout ratio (DPR) is 67.42%.
About Redwood Trust
Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company 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, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.
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