Redwood Trust, Inc. (NYSE:RWT) Stock Has Consensus Target Price of $5.25

Redwood Trust, Inc. (NYSE:RWT) has been assigned an average recommendation of “Hold” from the eleven brokerages that are presently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and seven have assigned a buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $5.25.

A number of equities research analysts have commented on RWT shares. Citigroup reissued a “market outperform” rating on shares of Redwood Trust in a research report on Thursday, October 15th. UBS Group decreased their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research note on Friday, August 21st. Keefe, Bruyette & Woods lowered their price target on Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a report on Monday, September 14th. Citizens Jmp dropped their price target on Redwood Trust from $6.00 to $4.00 and set a “market outperform” rating on the stock in a research report on Thursday, October 15th. Finally, Wells Fargo & Company reduced their price objective on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 29th.

Redwood Trust Trading Up 2.1%

Shares of NYSE RWT opened at $3.19 on Tuesday. Redwood Trust has a twelve month low of $2.88 and a twelve month high of $6.97. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69. The stock has a fifty day simple moving average of $3.90 and a 200-day simple moving average of $4.74. The stock has a market capitalization of $400.07 million, a PE ratio of -79.61 and a beta of 1.45.

Redwood Trust (NYSE:RWT) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The firm had revenue of $56.01 million for the quarter, compared to analyst estimates of $89.45 million. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%. On average, equities analysts forecast that Redwood Trust will post 0.96 earnings per share for the current year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 22.6%. The ex-dividend date was Wednesday, September 23rd. Redwood Trust’s dividend payout ratio (DPR) is -1,800.00%.

Insider Activity

In other news, CFO Brooke Carillo acquired 26,065 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was bought at an average price of $3.85 per share, for a total transaction of $100,350.25. Following the transaction, the chief financial officer owned 140,481 shares in the company, valued at $540,851.85. This represents a 22.78% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, President Dashiell Robinson acquired 63,211 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were purchased at an average price of $3.98 per share, with a total value of $251,579.78. Following the transaction, the president owned 395,050 shares in the company, valued at $1,572,299. The trade was a 19.05% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders purchased 244,171 shares of company stock valued at $948,402. 3.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Redwood Trust

Institutional investors have recently added to or reduced their stakes in the business. Janney Montgomery Scott LLC grew its holdings in Redwood Trust by 18.5% during the first quarter. Janney Montgomery Scott LLC now owns 15,113 shares of the real estate investment trust’s stock worth $85,000 after acquiring an additional 2,363 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Redwood Trust by 0.4% during the 2nd quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock worth $3,385,000 after purchasing an additional 2,627 shares in the last quarter. Amundi boosted its position in shares of Redwood Trust by 35.3% during the 1st quarter. Amundi now owns 18,584 shares of the real estate investment trust’s stock worth $104,000 after purchasing an additional 4,847 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Redwood Trust by 41.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 21,311 shares of the real estate investment trust’s stock worth $120,000 after purchasing an additional 6,249 shares during the period. Finally, WINTON GROUP Ltd grew its stake in shares of Redwood Trust by 10.8% during the 2nd quarter. WINTON GROUP Ltd now owns 76,700 shares of the real estate investment trust’s stock worth $364,000 after purchasing an additional 7,500 shares during the period. Hedge funds and other institutional investors own 74.34% of the company’s stock.

About Redwood Trust

Redwood Trust, Inc is a specialty finance company and real estate investment trust headquartered in Mill Valley, California. Founded in 1994 and traded on the New York Stock Exchange under the symbol RWT, the company focuses on investing in and financing residential real estate credit.

Redwood Trust’s activities include acquiring, originating, securitizing and managing residential mortgage loans and related assets. Its portfolio has historically included jumbo and other non-agency residential mortgages, mortgage-backed securities, mortgage servicing rights and other residential credit investments.