Redwood Trust, Inc. (NYSE:RWT) Stock Has Average Price Target of $5.84

Shares of Redwood Trust, Inc. (NYSE:RWT) have received a consensus rating of “Hold” from the eleven research firms that are currently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and six have given a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $5.84.

Several equities analysts have issued reports on the stock. Keefe, Bruyette & Woods decreased their price objective on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a report on Monday, September 14th. Piper Sandler reduced their price target on shares of Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research report on Thursday, July 2nd. JonesTrading decreased their price target on shares of Redwood Trust from $6.25 to $6.00 and set a “buy” rating on the stock in a research note on Tuesday, July 28th. BTIG Research reiterated a “buy” rating and issued a $6.00 price objective on shares of Redwood Trust in a report on Tuesday, July 28th. Finally, Wells Fargo & Company lowered their price objective on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 29th.

Redwood Trust Price Performance

Shares of NYSE:RWT opened at $3.85 on Friday. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69. Redwood Trust has a twelve month low of $3.22 and a twelve month high of $6.97. The company’s 50 day moving average is $4.43 and its 200 day moving average is $5.03. The company has a market cap of $484.23 million, a PE ratio of -96.35 and a beta of 1.37.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The business had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. On average, sell-side analysts forecast that Redwood Trust will post 1.03 EPS for the current year.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 18.7%. The ex-dividend date is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio (DPR) is -1,800.00%.

Insider Transactions at Redwood Trust

In other news, CFO Brooke Carillo purchased 26,065 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average cost of $3.85 per share, for a total transaction of $100,350.25. Following the completion of the transaction, the chief financial officer owned 140,481 shares of the company’s stock, valued at $540,851.85. This trade represents a 22.78% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, President Dashiell Robinson acquired 63,211 shares of Redwood Trust stock in a transaction that occurred on Wednesday, September 16th. The stock was purchased at an average cost of $3.98 per share, with a total value of $251,579.78. Following the completion of the purchase, the president owned 395,050 shares in the company, valued at $1,572,299. The trade was a 19.05% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought a total of 244,171 shares of company stock valued at $948,402 over the last ninety days. Company insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp raised its holdings in Redwood Trust by 5.1% in the 2nd quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust’s stock valued at $24,727,000 after acquiring an additional 254,399 shares during the last quarter. Bank of New York Mellon Corp grew its position in shares of Redwood Trust by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock valued at $3,385,000 after purchasing an additional 2,627 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Redwood Trust in the second quarter valued at approximately $2,032,000. Quantinno Capital Management LP increased its holdings in shares of Redwood Trust by 22.7% in the first quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock valued at $2,098,000 after purchasing an additional 69,173 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in Redwood Trust during the second quarter worth approximately $1,349,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

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.