JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Redwood Trust (NYSE:RWT) Stock

Redwood Trust (NYSE:RWT) had its price target raised by JPMorgan Chase & Co. from $5.50 to $6.00 in a report released on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the real estate investment trust’s stock. JPMorgan Chase & Co.‘s price target would indicate a potential upside of 1.78% from the company’s previous close.

A number of other equities analysts have also issued reports on RWT. StockNews.com raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Wednesday, March 5th. JMP Securities lowered their target price on Redwood Trust from $8.00 to $7.50 and set a “market outperform” rating on the stock in a report on Thursday, April 17th. Finally, Jones Trading reduced their price objective on shares of Redwood Trust from $8.00 to $7.00 and set a “buy” rating for the company in a research report on Thursday, April 17th. Five investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Redwood Trust presently has a consensus rating of “Moderate Buy” and an average price target of $7.57.

Redwood Trust Trading Up 1.1 %

Shares of RWT stock opened at $5.90 on Thursday. The firm has a market capitalization of $783.93 million, a PE ratio of 17.86 and a beta of 1.15. 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 1 year low of $4.68 and a 1 year high of $8.15. The stock has a fifty day moving average of $5.96 and a two-hundred day moving average of $6.53.

Redwood Trust (NYSE:RWT) last announced its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.03). Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. The company had revenue of $73.80 million during the quarter, compared to the consensus estimate of $26.55 million. As a group, research analysts expect that Redwood Trust will post 0.78 EPS for the current year.

Institutional Investors Weigh In On Redwood Trust

A number of large investors have recently made changes to their positions in the company. LaSalle St. Investment Advisors LLC purchased a new position in Redwood Trust during the 4th quarter worth approximately $37,000. Sovran Advisors LLC acquired a new position in Redwood Trust during the fourth quarter valued at $63,000. KBC Group NV raised its position in Redwood Trust by 86.7% during the fourth quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock valued at $67,000 after buying an additional 4,788 shares during the period. Zacks Investment Management purchased a new stake in Redwood Trust in the 4th quarter worth about $74,000. Finally, Cibc World Markets Corp acquired a new stake in Redwood Trust during the 4th quarter worth about $80,000. Institutional investors and hedge funds own 74.34% of the company’s stock.

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.