Brokerages Set Redwood Trust, Inc. (NYSE:RWT) Price Target at $6.75

Shares of Redwood Trust, Inc. (NYSE:RWT) have received an average recommendation of “Hold” from the seven brokerages that are covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $6.75.

RWT has been the subject of several research reports. 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 Wednesday, September 3rd. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, October 8th. BTIG Research reaffirmed a “buy” rating and issued a $8.50 price target on shares of Redwood Trust in a research report on Friday, September 26th. Finally, Jones Trading decreased their price objective on Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research note on Thursday, October 30th.

Hedge Funds Weigh In On Redwood Trust

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP raised its stake in Redwood Trust by 10.2% in the third quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock valued at $86,969,000 after buying an additional 1,395,675 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Redwood Trust by 2.6% in the 2nd quarter. Geode Capital Management LLC now owns 3,176,277 shares of the real estate investment trust’s stock valued at $18,773,000 after acquiring an additional 80,206 shares during the last quarter. Boston Partners raised its position in shares of Redwood Trust by 2.0% during the 2nd quarter. Boston Partners now owns 2,750,890 shares of the real estate investment trust’s stock worth $16,117,000 after acquiring an additional 54,209 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of 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 acquiring an additional 149,003 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in Redwood Trust by 29.9% during the third quarter. Invesco Ltd. now owns 2,034,437 shares of the real estate investment trust’s stock worth $11,779,000 after purchasing an additional 468,720 shares during the last quarter. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Stock Performance

NYSE RWT opened at $5.53 on Tuesday. The company has a debt-to-equity ratio of 22.73, a current ratio of 57.77 and a quick ratio of 57.77. The company has a market cap of $699.91 million, a P/E ratio of -6.82 and a beta of 1.59. The stock has a 50-day moving average of $5.44 and a two-hundred day moving average of $5.74. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $6.73.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Wednesday, October 29th. The real estate investment trust reported $0.20 EPS for the quarter, beating the consensus estimate of $0.16 by $0.04. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 9.19%. The business had revenue of $54.37 million during the quarter, compared to analyst estimates of $31.04 million. As a group, analysts anticipate that Redwood Trust will post 0.78 EPS for the current year.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd will be given a $0.18 dividend. The ex-dividend date of this dividend is Tuesday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 13.0%. Redwood Trust’s dividend payout ratio is currently -88.89%.

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.