Redwood Trust (NYSE:RWT) Reaches New 1-Year Low – Here’s What Happened

Shares of Redwood Trust, Inc. (NYSE:RWT) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $4.67 and last traded at $4.80, with a volume of 3393367 shares. The stock had previously closed at $4.81.

Wall Street Analyst Weigh In

RWT has been the subject of a number of recent research reports. Zacks Research downgraded Redwood Trust from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Wall Street Zen raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. BTIG Research decreased their price target on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. JonesTrading reiterated a “buy” rating and set a $6.25 price target on shares of Redwood Trust in a research note on Thursday, April 30th. Finally, Piper Sandler boosted their price objective on shares of Redwood Trust from $6.00 to $6.50 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $6.54.

Redwood Trust Trading Down 2.8%

The stock has a 50 day moving average of $5.31 and a 200-day moving average of $5.61. The company has a market capitalization of $592.92 million, a P/E ratio of -6.07 and a beta of 1.37. The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were paid a dividend of $0.18 per share. The ex-dividend date was Tuesday, June 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 15.2%. Redwood Trust’s payout ratio is -92.31%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Clearstead Advisors LLC lifted its position in shares of Redwood Trust by 192.5% in the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after acquiring an additional 3,572 shares in the last quarter. Russell Investments Group Ltd. raised its stake in Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after purchasing an additional 6,082 shares during the period. Westbourne Investments Inc. bought a new stake in Redwood Trust during the 4th quarter valued at approximately $55,000. Bank of Marin purchased a new position in Redwood Trust in the 4th quarter worth approximately $58,000. Finally, Abel Hall LLC purchased a new position in Redwood Trust in the 4th quarter worth approximately $58,000. Institutional investors own 74.34% of the company’s stock.

About Redwood Trust

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.