Redwood Trust (NYSE:RWT) Sets New 1-Year High After Strong Earnings

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

The real estate investment trust reported $0.33 EPS for the quarter, beating analysts’ consensus estimates 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 analysts’ expectations of $24.88 million.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 10.9%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is currently -88.89%.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Redwood Trust

A number of hedge funds have recently modified their holdings of the company. UBS Group AG raised its stake in shares of Redwood Trust by 521.1% during 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 last quarter. Wellington Management Group LLP increased its holdings in Redwood Trust by 10.2% during the 3rd quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock valued at $86,969,000 after purchasing an additional 1,395,675 shares during the period. Evergreen Capital Management LLC raised its position in Redwood Trust by 52.8% during the 4th quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust’s stock valued at $9,257,000 after purchasing an additional 578,301 shares during the last quarter. Tran Capital Management L.P. purchased a new stake in Redwood Trust in the 4th quarter worth approximately $2,947,000. Finally, Invesco Ltd. grew its position in shares of Redwood Trust by 29.9% in the 3rd quarter. Invesco Ltd. now owns 2,034,437 shares of the real estate investment trust’s stock worth $11,779,000 after buying an additional 468,720 shares during the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Trading Down 1.4%

The company has a debt-to-equity ratio of 22.68, a quick ratio of 57.77 and a current ratio of 57.77. The stock has a market capitalization of $834.19 million, a P/E ratio of -10.80 and a beta of 1.59. The stock has a 50-day moving average price of $5.67 and a two-hundred day moving average price of $5.69.

Redwood Trust Company Profile

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.