Redwood Trust (NYSE:RWT) Stock Rating Cut to Market Perform at Keefe, Bruyette & Woods

Redwood Trust (NYSE:RWT) was downgraded by equities researchers at Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a research report issued to clients and investors on Thursday, FinViz reports. They currently have a $3.50 target price on the real estate investment trust’s stock, down from their previous target price of $4.25. Keefe, Bruyette & Woods‘s price objective suggests a potential upside of 18.04% from the company’s previous close.

A number of other research firms also recently issued reports on RWT. Piper Sandler decreased their price objective on Redwood Trust from $5.25 to $3.75 and set a “neutral” rating for the company in a report on Friday, October 9th. Zacks Research cut Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Wednesday, October 14th. Wells Fargo & Company reduced their price target on Redwood Trust from $6.00 to $3.50 and set an “equal weight” rating for the company in a research report on Wednesday, November 4th. Citigroup reaffirmed a “market outperform” rating on shares of Redwood Trust in a research report on Thursday, October 15th. Finally, Citizens Jmp decreased their price target on shares of Redwood Trust from $6.00 to $4.00 and set a “market outperform” rating for the company in a research note on Thursday, October 15th. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $4.78.

Redwood Trust Price Performance

RWT stock opened at $2.96 on Thursday. The stock has a 50-day moving average price of $3.50 and a two-hundred day moving average price of $4.90. Redwood Trust has a 1 year low of $2.69 and a 1 year high of $6.97. The stock has a market cap of $372.43 million, a PE ratio of 2.86 and a beta of 1.49. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 34.74.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Tuesday, November 3rd. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.03). Redwood Trust had a negative net margin of 2.89% and a positive return on equity of 16.27%. Equities analysts forecast that Redwood Trust will post 0.96 EPS for the current fiscal year.

Insider Activity

In other news, CFO Brooke Carillo bought 26,065 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were bought at an average cost of $3.85 per share, with a total value of $100,350.25. Following the acquisition, the chief financial officer owned 140,481 shares in the company, valued at $540,851.85. This trade represents a 22.78% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Greg H. Kubicek bought 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average price of $3.85 per share, with a total value of $192,500.00. Following the completion of the purchase, the director directly owned 127,185 shares in the company, valued at $489,662.25. The trade was a 64.78% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 244,171 shares of company stock worth $948,402. Insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Redwood Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE acquired a new stake in shares of Redwood Trust in the second quarter valued at approximately $2,032,000. Legal & General Group Plc bought a new position in shares of Redwood Trust during the 2nd quarter worth approximately $1,349,000. PVG Asset Management Corp bought a new position in shares of Redwood Trust during the 2nd quarter worth approximately $592,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Redwood Trust by 7,932.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust’s stock worth $1,256,000 after acquiring an additional 261,759 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Redwood Trust during the 2nd quarter worth approximately $990,000. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc. is a specialty finance company focused on the U.S. housing and mortgage markets. Founded in 1994, the company invests in and finances residential mortgage credit and provides mortgage banking services. Through businesses including Sequoia and CoreVest, Redwood originates and acquires residential loans, including jumbo mortgages for homebuyers and business-purpose loans for residential real estate investors. Its activities also include investing in mortgage-related assets and providing financing for rental housing and other real estate.