Redwood Trust (NYSE:RWT) Reaches New 52-Week High After Better-Than-Expected Earnings

Redwood Trust, Inc. (NYSE:RWT)’s stock price hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $6.88 and last traded at $6.9350, with a volume of 1596605 shares traded. The stock had previously closed at $5.54.

The real estate investment trust reported $0.33 EPS for the quarter, beating the consensus estimate of $0.22 by $0.11. Redwood Trust had a positive return on equity of 11.80% and a negative net margin of 8.62%.The business had revenue of $87.30 million for the quarter, compared to the consensus estimate of $24.88 million.

Redwood Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 10.9%. The ex-dividend date was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio is presently -88.89%.

Analysts Set New Price Targets

Several research firms have recently commented on RWT. Wall Street Zen downgraded shares of Redwood Trust from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a report on Friday, January 23rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a research note on Thursday, January 22nd. Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Finally, Jones Trading reduced their target price on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Redwood Trust has an average rating of “Moderate Buy” and a consensus price target of $6.75.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP lifted its position in Redwood Trust by 10.2% in the third quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock worth $86,969,000 after buying an additional 1,395,675 shares during the last quarter. UBS Group AG raised its stake in shares of Redwood Trust by 521.1% in the fourth quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock valued at $21,430,000 after acquiring an additional 3,251,302 shares during the period. Geode Capital Management LLC grew its holdings in Redwood Trust by 2.6% during the 2nd quarter. Geode Capital Management LLC now owns 3,176,277 shares of the real estate investment trust’s stock valued at $18,773,000 after purchasing an additional 80,206 shares during the last quarter. Boston Partners raised its position in Redwood Trust by 2.0% in the 2nd 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 period. Finally, Charles Schwab Investment Management Inc. lifted its stake in Redwood Trust by 15.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,169,992 shares of the real estate investment trust’s stock worth $12,000,000 after purchasing an additional 282,800 shares during the last quarter. 74.34% of the stock is owned by institutional investors.

Redwood Trust Stock Down 1.4%

The firm has a market cap of $834.19 million, a PE ratio of -10.80 and a beta of 1.59. The company has a 50-day simple moving average of $5.67 and a 200-day simple moving average of $5.69. The company has a debt-to-equity ratio of 22.68, a current ratio of 57.77 and a quick ratio of 57.77.

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.