Redwood Trust (NYSE:RWT) Price Target Lowered to $4.75 at Keefe, Bruyette & Woods

Redwood Trust (NYSE:RWT) had its price target cut by equities research analysts at Keefe, Bruyette & Woods from $5.50 to $4.75 in a research note issued on Monday, Benzinga reports. The firm presently has an “outperform” rating on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ price target would suggest a potential upside of 25.83% from the company’s previous close.

Several other equities research analysts have also commented on RWT. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Zacks Research downgraded Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 21st. Wells Fargo & Company decreased their target price on shares of Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 29th. Citizens Jmp decreased their price objective on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating on the stock in a research report on Wednesday, July 8th. Finally, UBS Group cut their price target on Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research note on Friday, August 21st. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Redwood Trust has an average rating of “Hold” and a consensus target price of $5.84.

Redwood Trust Stock Up 6.3%

Shares of NYSE:RWT traded up $0.23 on Monday, hitting $3.77. 4,061,590 shares of the company traded hands, compared to its average volume of 2,277,769. The company has a market cap of $474.18 million, a PE ratio of -94.35 and a beta of 1.37. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The stock has a 50 day simple moving average of $4.70 and a 200-day simple moving average of $5.22. Redwood Trust has a 52 week low of $3.22 and a 52 week high of $6.97.

Redwood Trust (NYSE:RWT) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The business had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. As a group, research analysts expect that Redwood Trust will post 1.03 earnings per share for the current year.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vident Advisory LLC increased its position in Redwood Trust by 4.7% during the fourth quarter. Vident Advisory LLC now owns 39,606 shares of the real estate investment trust’s stock valued at $219,000 after acquiring an additional 1,773 shares during the last quarter. Janney Montgomery Scott LLC boosted its position in Redwood Trust by 18.5% in the 1st quarter. Janney Montgomery Scott LLC now owns 15,113 shares of the real estate investment trust’s stock valued at $85,000 after buying an additional 2,363 shares during the period. Inceptionr LLC lifted its holdings in shares of Redwood Trust by 10.7% in the 3rd quarter. Inceptionr LLC now owns 26,377 shares of the real estate investment trust’s stock worth $153,000 after buying an additional 2,560 shares during the period. Bank of New York Mellon Corp lifted its stake in Redwood Trust by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock worth $3,385,000 after acquiring an additional 2,627 shares during the period. Finally, Clearstead Advisors LLC grew its holdings in Redwood Trust by 192.5% during the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 3,572 shares in the last quarter. 74.34% of the stock is owned by institutional investors.

About Redwood Trust

Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.

Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.