Redwood Trust (NYSE:RWT) Share Price Passes Above Two Hundred Day Moving Average Following Analyst Downgrade

Redwood Trust, Inc. (NYSE:RWT)’s stock price crossed above its two hundred day moving average during trading on Monday after Wall Street Zen upgraded the stock from a sell rating to a hold rating. The stock has a two hundred day moving average of $5.66 and traded as high as $5.97. Redwood Trust shares last traded at $5.9550, with a volume of 611,003 shares.

RWT has been the topic of several other research reports. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 target price on the stock in a report on Friday, January 23rd. Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Citigroup restated a “market perform” rating on shares of Redwood Trust in a research note on Wednesday, February 18th. JonesTrading restated a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a research note on Tuesday, March 3rd. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Redwood Trust from $5.75 to $7.00 and gave the stock a “market perform” rating in a report on Wednesday, February 18th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $6.82.

Institutional Investors Weigh In On Redwood Trust

Several institutional investors have recently added to or reduced their stakes in RWT. Clearstead Advisors LLC raised its position in shares of Redwood Trust by 192.5% in the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after purchasing an additional 3,572 shares during the period. Russell Investments Group Ltd. boosted its holdings in Redwood Trust by 331.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after buying an additional 6,082 shares during the period. CWM LLC grew its stake in Redwood Trust by 54.2% in the 3rd quarter. CWM LLC now owns 9,514 shares of the real estate investment trust’s stock valued at $55,000 after buying an additional 3,346 shares in the last quarter. Westbourne Investments Inc. bought a new stake in Redwood Trust during the 4th quarter valued at $55,000. Finally, Bank of Marin bought a new stake in Redwood Trust during the 4th quarter valued at $58,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Trading Up 0.1%

The firm has a 50-day simple moving average of $5.87 and a 200-day simple moving average of $5.66. The company has a quick ratio of 55.15, a current ratio of 55.15 and a debt-to-equity ratio of 24.34. The stock has a market cap of $757.38 million, a PE ratio of -9.93 and a beta of 1.52.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The company had revenue of $140.33 million for the quarter, compared to the consensus estimate of $24.88 million. Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. Equities analysts forecast that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 24th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.9%. The ex-dividend date of this dividend was Tuesday, March 24th. Redwood Trust’s dividend payout ratio is presently -118.03%.

Redwood Trust Company Profile

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.