Redwood Trust (NYSE:RWT) Shares Gap Down – Should You Sell?

Redwood Trust, Inc. (NYSE:RWT)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $5.73, but opened at $5.56. Redwood Trust shares last traded at $5.4450, with a volume of 190,535 shares.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RWT. BTIG Research reiterated a “buy” rating and issued a $8.50 price objective on shares of Redwood Trust in a report on Friday, September 26th. UBS Group upped their target price on Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a report on Wednesday, September 3rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, October 8th. Finally, Jones Trading reduced their price objective on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $6.75.

Redwood Trust Stock Down 5.1%

The company has a market capitalization of $688.51 million, a P/E ratio of -6.71 and a beta of 1.59. The company has a 50-day moving average of $5.45 and a two-hundred day moving average of $5.75. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Wednesday, October 29th. The real estate investment trust reported $0.20 EPS for the quarter, beating the consensus estimate of $0.16 by $0.04. The business had revenue of $54.37 million during the quarter, compared to analyst estimates of $31.04 million. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%. On average, research analysts predict that Redwood Trust, Inc. will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 13.2%. The ex-dividend date is Tuesday, December 23rd. Redwood Trust’s dividend payout ratio is -88.89%.

Hedge Funds Weigh In On Redwood Trust

Several large investors have recently made changes to their positions in RWT. CIBC Bancorp USA Inc. purchased a new stake in shares of Redwood Trust in the 3rd quarter worth approximately $82,000. Alpine Global Management LLC bought a new stake in Redwood Trust in the third quarter worth $290,000. Caxton Associates LLP grew its stake in shares of Redwood Trust by 63.5% in the third quarter. Caxton Associates LLP now owns 112,677 shares of the real estate investment trust’s stock worth $652,000 after acquiring an additional 43,752 shares during the last quarter. Dark Forest Capital Management LP increased its holdings in shares of Redwood Trust by 55.9% during the third quarter. Dark Forest Capital Management LP now owns 235,084 shares of the real estate investment trust’s stock valued at $1,361,000 after acquiring an additional 84,291 shares in the last quarter. Finally, XTX Topco Ltd raised its position in shares of Redwood Trust by 505.5% in the 3rd quarter. XTX Topco Ltd now owns 87,875 shares of the real estate investment trust’s stock worth $509,000 after purchasing an additional 73,362 shares during the last quarter. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.