Redwood Trust, Inc. (NYSE:RWT) Declares $0.18 Quarterly Dividend

Redwood Trust, Inc. (NYSE:RWT) announced a quarterly dividend on Thursday, March 13th, RTT News reports. Investors of record on Monday, March 24th will be given a dividend of 0.18 per share by the real estate investment trust on Monday, March 31st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.64%.

Redwood Trust has decreased its dividend payment by an average of 4.9% annually over the last three years. Redwood Trust has a dividend payout ratio of 94.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Redwood Trust to earn $0.90 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 80.0%.

Redwood Trust Stock Performance

NYSE:RWT traded up $0.04 during trading hours on Thursday, reaching $6.19. The company had a trading volume of 773,133 shares, compared to its average volume of 813,650. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15. The firm has a market cap of $819.77 million, a PE ratio of 18.75 and a beta of 1.63. The business’s 50 day moving average price is $6.45 and its 200-day moving average price is $7.01. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.03). The firm had revenue of $27.60 million for the quarter, compared to analysts’ expectations of $26.00 million. Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. Research analysts forecast that Redwood Trust will post 0.78 EPS for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. JMP Securities reiterated a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a report on Friday, February 14th. JPMorgan Chase & Co. lowered their target price on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 21st. Finally, StockNews.com raised Redwood Trust from a “sell” rating to a “hold” rating in a report on Wednesday, March 5th. Five research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $7.75.

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.