Redwood Trust (NYSE:RWT) Sees Unusually-High Trading Volume – Here’s Why

Redwood Trust, Inc. (NYSE:RWT) shares saw unusually-strong trading volume on Tuesday . Approximately 1,819,727 shares were traded during trading, an increase of 12% from the previous session’s volume of 1,620,837 shares.The stock last traded at $4.7380 and had previously closed at $4.55.

Analyst Upgrades and Downgrades

RWT has been the topic of several recent analyst reports. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Piper Sandler reduced their price objective on shares of Redwood Trust from $6.50 to $5.50 and set a “neutral” rating on the stock in a report on Thursday, July 2nd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Zacks Research downgraded shares of Redwood Trust from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Finally, BTIG Research decreased their price objective on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $6.39.

Redwood Trust Price Performance

The company has a fifty day moving average of $5.21 and a 200-day moving average of $5.58. The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42. The stock has a market cap of $581.65 million, a PE ratio of -5.96 and a beta of 1.37.

Redwood Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 23rd were paid a $0.18 dividend. The ex-dividend date of this dividend was Tuesday, June 23rd. This represents a $0.72 annualized dividend and a dividend yield of 15.5%. Redwood Trust’s dividend payout ratio (DPR) is presently -92.31%.

Institutional Investors Weigh In On Redwood Trust

A number of hedge funds have recently added to or reduced their stakes in RWT. Wellington Management Group LLP grew its stake in shares of Redwood Trust by 0.5% in the fourth quarter. Wellington Management Group LLP now owns 15,101,012 shares of the real estate investment trust’s stock worth $83,509,000 after acquiring an additional 80,529 shares in 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 in the last quarter. Invesco Ltd. boosted its holdings in Redwood Trust by 25.4% in the fourth quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock valued at $14,107,000 after purchasing an additional 516,630 shares during the period. Charles Schwab Investment Management Inc. grew its stake in Redwood Trust by 15.0% during the 4th 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 in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Redwood Trust by 7.5% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,148,393 shares of the real estate investment trust’s stock worth $12,439,000 after purchasing an additional 149,003 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors and hedge funds.

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.