Redwood Trust, Inc. (NYSE:RWT) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT) have been assigned an average rating of “Moderate Buy” from the seven analysts that are currently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $7.75.

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. cut their price target on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 21st. JMP Securities reiterated a “market outperform” rating and set a $8.00 target price on shares of Redwood Trust in a research report on Friday, February 14th. Finally, StockNews.com raised Redwood Trust from a “sell” rating to a “hold” rating in a research report on Wednesday, March 5th.

Redwood Trust Trading Down 0.2 %

RWT opened at $6.12 on Friday. The company has a debt-to-equity ratio of 14.09, a quick ratio of 44.36 and a current ratio of 44.36. Redwood Trust has a one year low of $5.46 and a one year high of $8.15. The company has a market cap of $810.36 million, a P/E ratio of 18.53 and a beta of 1.63. The business’s 50-day simple moving average is $6.43 and its 200-day simple moving average is $6.92.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.03). The company had revenue of $27.60 million during the quarter, compared to analysts’ expectations of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. As a group, equities research analysts expect that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 24th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 11.77%. The ex-dividend date of this dividend is Monday, March 24th. Redwood Trust’s dividend payout ratio (DPR) is presently 218.18%.

Institutional Trading of Redwood Trust

A number of hedge funds have recently added to or reduced their stakes in RWT. Invesco Ltd. grew its position in Redwood Trust by 150.9% in the 4th quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust’s stock valued at $13,031,000 after buying an additional 1,200,050 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Redwood Trust by 6.9% in the 3rd quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock worth $112,945,000 after acquiring an additional 941,223 shares during the period. Balyasny Asset Management L.P. boosted its holdings in shares of Redwood Trust by 19.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust’s stock valued at $13,023,000 after acquiring an additional 321,612 shares in the last quarter. NFC Investments LLC increased its stake in shares of Redwood Trust by 127.7% during the third quarter. NFC Investments LLC now owns 484,975 shares of the real estate investment trust’s stock worth $3,749,000 after acquiring an additional 271,975 shares during the period. Finally, Angel Oak Capital Advisors LLC purchased a new position in Redwood Trust during the fourth quarter worth about $1,726,000. 74.34% of the stock is owned by institutional investors and hedge funds.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.