Brevan Howard Capital Management LP Acquires New Position in Redwood Trust, Inc. (NYSE:RWT)

Brevan Howard Capital Management LP acquired a new position in shares of Redwood Trust, Inc. (NYSE:RWT) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 50,703 shares of the real estate investment trust’s stock, valued at approximately $331,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Boston Partners grew its holdings in shares of Redwood Trust by 8.3% in the 4th quarter. Boston Partners now owns 2,707,027 shares of the real estate investment trust’s stock worth $17,561,000 after acquiring an additional 206,698 shares during the period. Invesco Ltd. increased its position in shares of Redwood Trust by 150.9% in the fourth quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust’s stock valued at $13,031,000 after buying an additional 1,200,050 shares in the last quarter. Balyasny Asset Management L.P. raised its stake in shares of Redwood Trust by 19.2% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust’s stock worth $13,023,000 after buying an additional 321,612 shares during the last quarter. Northern Trust Corp boosted its position in shares of Redwood Trust by 14.4% in the 4th quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust’s stock worth $10,248,000 after buying an additional 197,719 shares in the last quarter. Finally, Ceredex Value Advisors LLC grew its stake in Redwood Trust by 6.9% in the 4th quarter. Ceredex Value Advisors LLC now owns 1,190,050 shares of the real estate investment trust’s stock valued at $7,771,000 after acquiring an additional 76,450 shares during the last quarter. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Price Performance

RWT opened at $5.83 on Friday. Redwood Trust, Inc. has a 1 year low of $4.68 and a 1 year high of $8.15. The company’s 50 day simple moving average is $5.89 and its 200 day simple moving average is $6.47. The stock has a market capitalization of $775.29 million, a PE ratio of 17.67 and a beta of 1.45. The company has a debt-to-equity ratio of 14.09, a quick ratio of 44.36 and a current ratio of 44.36.

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). The company had revenue of $73.80 million during the quarter, compared to analyst estimates of $26.55 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. As a group, sell-side analysts expect that Redwood Trust, Inc. will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Monday, March 24th were issued a $0.18 dividend. The ex-dividend date of this dividend was Monday, March 24th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.35%. Redwood Trust’s dividend payout ratio (DPR) is 327.27%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on RWT. Keefe, Bruyette & Woods reduced their price target on shares of Redwood Trust from $7.75 to $7.00 and set an “outperform” rating on the stock in a report on Tuesday, May 6th. UBS Group increased their target price on Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a report on Monday, May 5th. StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research report on Wednesday, March 5th. JPMorgan Chase & Co. lifted their price objective on Redwood Trust from $5.50 to $6.00 and gave the stock a “neutral” rating in a research report on Thursday, May 1st. Finally, JMP Securities reduced their target price on shares of Redwood Trust from $8.00 to $7.50 and set a “market outperform” rating on the stock in a report on Thursday, April 17th. Five research analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Redwood Trust presently has an average rating of “Moderate Buy” and a consensus target price of $7.44.

Redwood Trust Profile

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.