Redwood Trust (NYSE:RWT) Releases Earnings Results, Misses Estimates By $0.08 EPS

Redwood Trust (NYSE:RWT) released its quarterly earnings results on Tuesday. The real estate investment trust reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.08), FiscalAI reports. Redwood Trust had a negative net margin of 7.23% and a positive return on equity of 14.53%.

Redwood Trust Stock Performance

Shares of Redwood Trust stock opened at $4.94 on Tuesday. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 28.42. The stock’s fifty day moving average is $5.07 and its two-hundred day moving average is $5.52. Redwood Trust has a 52 week low of $4.19 and a 52 week high of $6.97. The company has a market capitalization of $618.21 million, a PE ratio of -6.33 and a beta of 1.37.

Redwood Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd were given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 14.6%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust’s dividend payout ratio is -92.31%.

Institutional Trading of Redwood Trust

Large investors have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Redwood Trust by 26.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock worth $2,990,000 after purchasing an additional 103,893 shares during the last quarter. Jane Street Group LLC bought a new stake in Redwood Trust during the 1st quarter valued at about $2,018,000. Strs Ohio bought a new stake in Redwood Trust during the 1st quarter valued at about $149,000. XTX Topco Ltd boosted its position in Redwood Trust by 35.4% in the 2nd quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock valued at $86,000 after buying an additional 3,795 shares during the period. Finally, Russell Investments Group Ltd. boosted its position in Redwood Trust by 331.8% in 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 buying an additional 6,082 shares during the period. 74.34% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have weighed in on RWT. Keefe, Bruyette & Woods upgraded shares of Redwood Trust from a “market perform” rating to an “outperform” rating and cut their price objective for the company from $7.00 to $6.00 in a research report on Thursday, July 9th. Wall Street Zen raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Citizens Jmp lowered their target price on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a report on Wednesday, July 8th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Finally, BTIG Research cut their price target on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $6.11.

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.