Redwood Trust (NYSE:RWT) Price Target Raised to $7.00

Redwood Trust (NYSE:RWT) had its target price hoisted by Keefe, Bruyette & Woods from $5.75 to $7.00 in a research note released on Wednesday morning,Benzinga reports. The firm currently has a market perform rating on the real estate investment trust’s stock.

RWT has been the topic of several other research reports. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. Citigroup reissued a “market perform” rating on shares of Redwood Trust in a research report on Wednesday. JonesTrading decreased their price target on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research note on Thursday, October 30th. Finally, JPMorgan Chase & Co. raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price objective on the stock in a research note on Friday, January 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $6.96.

Redwood Trust Stock Down 1.5%

Redwood Trust stock opened at $6.17 on Wednesday. The company has a market capitalization of $780.98 million, a PE ratio of -10.11 and a beta of 1.59. Redwood Trust has a 12-month low of $4.68 and a 12-month high of $6.97. The firm’s fifty day moving average is $5.76 and its 200 day moving average is $5.72. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.68.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.11. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 11.80%. The firm had revenue of $87.30 million during the quarter, compared to the consensus estimate of $24.88 million. As a group, sell-side analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.7%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -118.03%.

Institutional Investors Weigh In On Redwood Trust

Institutional investors have recently added to or reduced their stakes in the company. Boston Partners boosted its position in Redwood Trust by 2.0% in the second quarter. Boston Partners now owns 2,750,890 shares of the real estate investment trust’s stock worth $16,117,000 after purchasing an additional 54,209 shares during the last quarter. LSV Asset Management increased its position in shares of Redwood Trust by 11.6% during the 3rd quarter. LSV Asset Management now owns 1,978,325 shares of the real estate investment trust’s stock valued at $11,455,000 after purchasing an additional 205,980 shares during the last quarter. NFC Investments LLC raised its stake in shares of Redwood Trust by 12.8% during the 2nd quarter. NFC Investments LLC now owns 486,181 shares of the real estate investment trust’s stock worth $2,873,000 after purchasing an additional 55,081 shares during the period. Penserra Capital Management LLC purchased a new position in shares of Redwood Trust in the 2nd quarter worth about $1,114,000. Finally, Geode Capital Management LLC boosted its holdings in shares of Redwood Trust by 2.6% in the 2nd quarter. Geode Capital Management LLC now owns 3,176,277 shares of the real estate investment trust’s stock worth $18,773,000 after buying an additional 80,206 shares during the last quarter. 74.34% of the stock is owned by 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.