Keefe, Bruyette & Woods Issues Pessimistic Forecast for Redwood Trust (NYSE:RWT) Stock Price

Redwood Trust (NYSE:RWT) had its target price cut by equities research analysts at Keefe, Bruyette & Woods from $7.75 to $7.00 in a report issued on Tuesday,Benzinga reports. The firm currently has an “outperform” rating on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ target price would indicate a potential upside of 19.56% from the stock’s current price.

Several other brokerages have also recently issued reports on RWT. JMP Securities reduced their price target on shares of Redwood Trust from $8.00 to $7.50 and set a “market outperform” rating on the stock in a research report on Thursday, April 17th. UBS Group boosted their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a “buy” rating in a research note on Monday. StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Wednesday, March 5th. Jones Trading restated a “buy” rating and set a $7.00 price target on shares of Redwood Trust in a report on Friday, May 2nd. Finally, JPMorgan Chase & Co. lifted their price objective on Redwood Trust from $5.50 to $6.00 and gave the company a “neutral” rating in a research note on Thursday, May 1st. Five equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $7.44.

Redwood Trust Stock Performance

NYSE RWT opened at $5.86 on Tuesday. The stock has a fifty day simple moving average of $5.91 and a 200-day simple moving average of $6.50. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.09. The stock has a market cap of $778.62 million, a PE ratio of 17.74 and a beta of 1.45. Redwood Trust has a twelve month low of $4.68 and a twelve month high of $8.15.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 earnings per share 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 for the quarter, compared to analyst estimates of $26.55 million. Equities analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current year.

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RWT. Cambridge Investment Research Advisors Inc. raised its stake in Redwood Trust by 3.1% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 59,300 shares of the real estate investment trust’s stock worth $360,000 after acquiring an additional 1,767 shares in the last quarter. New York State Teachers Retirement System lifted its holdings in shares of Redwood Trust by 1.5% in the 1st quarter. New York State Teachers Retirement System now owns 152,430 shares of the real estate investment trust’s stock valued at $925,000 after purchasing an additional 2,326 shares during the last quarter. Illinois Municipal Retirement Fund boosted its position in shares of Redwood Trust by 3.4% in the 4th quarter. Illinois Municipal Retirement Fund now owns 72,744 shares of the real estate investment trust’s stock valued at $475,000 after purchasing an additional 2,383 shares during the period. Focus Partners Wealth grew its stake in Redwood Trust by 14.1% during the 4th quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust’s stock worth $132,000 after buying an additional 2,488 shares during the last quarter. Finally, Apollon Wealth Management LLC increased its position in Redwood Trust by 3.9% during the first quarter. Apollon Wealth Management LLC now owns 81,897 shares of the real estate investment trust’s stock worth $497,000 after buying an additional 3,049 shares during the period. 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.