Redwood Trust (NYSE:RWT) Stock Rating Upgraded by Zacks Research

Redwood Trust (NYSE:RWT) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a report released on Tuesday, Zacks reports.

Other equities analysts have also issued reports about the company. UBS Group lowered their target price on Redwood Trust from $7.00 to $6.50 and set a “buy” rating on the stock in a research report on Friday, August 21st. Wells Fargo & Company decreased their price target on shares of Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 29th. JonesTrading lowered their price objective on shares of Redwood Trust from $6.25 to $6.00 and set a “buy” rating on the stock in a report on Tuesday, July 28th. JPMorgan Chase & Co. dropped their price objective on shares of Redwood Trust from $6.50 to $6.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Finally, BTIG Research reiterated a “buy” rating and set a $6.00 price objective on shares of Redwood Trust in a report on Tuesday, July 28th. Six research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Redwood Trust currently has an average rating of “Hold” and an average price target of $5.84.

Redwood Trust Stock Performance

Shares of Redwood Trust stock opened at $3.90 on Tuesday. Redwood Trust has a one year low of $3.22 and a one year high of $6.97. The firm has a market capitalization of $490.51 million, a price-to-earnings ratio of -97.60 and a beta of 1.37. The business has a 50-day simple moving average of $4.66 and a 200 day simple moving average of $5.17. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The business had revenue of $56.01 million for the quarter, compared to analyst estimates of $89.45 million. On average, research analysts anticipate that Redwood Trust will post 1.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, President Dashiell I. Robinson acquired 63,211 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were purchased at an average cost of $3.98 per share, with a total value of $251,579.78. Following the acquisition, the president directly owned 395,050 shares of the company’s stock, valued at $1,572,299. The trade was a 19.05% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Christopher J. Abate bought 100,000 shares of Redwood Trust stock in a transaction dated Tuesday, September 15th. The stock was purchased at an average price of $3.84 per share, with a total value of $384,000.00. Following the purchase, the chief executive officer owned 679,283 shares in the company, valued at approximately $2,608,446.72. This represents a 17.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 239,276 shares of company stock valued at $928,430. 3.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. WINTON GROUP Ltd boosted its holdings in Redwood Trust by 10.8% during the second quarter. WINTON GROUP Ltd now owns 76,700 shares of the real estate investment trust’s stock worth $364,000 after purchasing an additional 7,500 shares during the last quarter. Engineers Gate Manager LP lifted its position in shares of Redwood Trust by 33.5% during the 2nd quarter. Engineers Gate Manager LP now owns 45,400 shares of the real estate investment trust’s stock worth $215,000 after buying an additional 11,400 shares in the last quarter. Squarepoint Ops LLC bought a new position in shares of Redwood Trust during the 2nd quarter worth approximately $157,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Redwood Trust in the 2nd quarter worth approximately $990,000. Finally, Two Sigma Securities LLC purchased a new position in shares of Redwood Trust in the 2nd quarter worth approximately $140,000. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Redwood Trust

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Redwood Trust insiders made substantial open-market purchases near $3.84–$3.98 per share. CEO Christopher Abate bought 100,000 shares, President Dashiell Robinson purchased 63,211, CFO Brooke Carillo acquired 26,065, and Director Greg Kubicek bought 50,000. The purchases increased their holdings by roughly 17% to 65% and may signal that management and the board consider RWT undervalued. Redwood Trust insider purchase filing
• Positive Sentiment: Redwood completed a private offering of $205 million in 7.00% convertible notes and a related restructuring. The proceeds should improve liquidity and financial flexibility for its residential mortgage-credit business. Redwood Trust convertible notes offering
• Neutral Sentiment: Redwood declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and an indicated yield of about 18%. The high yield may attract income-oriented investors, but the reported negative payout ratio highlights concerns about dividend sustainability.
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RWT from $5.50 to $4.75 while retaining an “outperform” rating. The reduced target signals weaker expectations and may pressure sentiment, although it remains above recent trading levels. Keefe, Bruyette & Woods lowers Redwood Trust price target
• Negative Sentiment: The convertible financing could eventually dilute existing shareholders if the notes convert into equity. Redwood’s latest results also showed revenue of $56.01 million versus an $89.45 million consensus estimate, despite adjusted earnings modestly exceeding expectations.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.