Insider Buying: Redwood Trust (NYSE:RWT) Insider Purchases $19,971.60 in Stock

Redwood Trust, Inc. (NYSE:RWT) insider Sasha Macomber purchased 4,895 shares of the stock in a transaction on Monday, September 21st. The shares were purchased at an average cost of $4.08 per share, with a total value of $19,971.60. Following the transaction, the insider owned 95,298 shares in the company, valued at $388,815.84. This trade represents a 5.41% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Redwood Trust Stock Down 9.4%

Shares of RWT stock opened at $3.73 on Thursday. The stock’s 50-day simple moving average is $4.54 and its 200-day simple moving average is $5.10. The company has a debt-to-equity ratio of 31.69, a quick ratio of 67.49 and a current ratio of 67.49. The firm has a market capitalization of $467.90 million, a PE ratio of -93.10 and a beta of 1.37. Redwood Trust, Inc. has a fifty-two week low of $3.22 and a fifty-two week high of $6.97.

Redwood Trust (NYSE:RWT) last released 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 return on equity of 16.02% and a net margin of 0.42%.The firm had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. Equities analysts expect that Redwood Trust, Inc. will post 1.03 earnings per share for the current year.

Redwood Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 19.3%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio is -1,800.00%.

Institutional Trading of Redwood Trust

A number of hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE acquired a new stake in Redwood Trust during the second quarter valued at $2,032,000. Legal & General Group Plc acquired a new position in shares of Redwood Trust in the second quarter worth about $1,349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Redwood Trust by 7,932.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust’s stock worth $1,256,000 after acquiring an additional 261,759 shares in the last quarter. State Street Corp boosted its stake in shares of Redwood Trust by 5.1% during the 2nd quarter. State Street Corp now owns 5,216,721 shares of the real estate investment trust’s stock worth $24,727,000 after acquiring an additional 254,399 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Redwood Trust during the 2nd quarter valued at about $990,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RWT has been the subject of several recent research reports. Keefe, Bruyette & Woods reduced their target price on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating for the company in a report on Monday, September 14th. BTIG Research reaffirmed a “buy” rating and set a $6.00 price target on shares of Redwood Trust in a research report on Tuesday, July 28th. JPMorgan Chase & Co. reduced their price objective on Redwood Trust from $6.50 to $6.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a report on Monday. Finally, Zacks Research upgraded Redwood Trust from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 15th. Six investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $5.84.

Redwood Trust Company Profile

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.