Redwood Trust (NYSE:RWT) Rating Increased to Hold at Wall Street Zen

Wall Street Zen upgraded shares of Redwood Trust (NYSE:RWT) from a sell rating to a hold rating in a research report report published on Saturday morning.

Several other analysts have also recently commented on the stock. Jones Trading reduced their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research note on Thursday, October 30th. BTIG Research reissued a “buy” rating and issued a $8.50 target price on shares of Redwood Trust in a report on Friday, September 26th. UBS Group lifted their price objective on Redwood Trust from $6.50 to $7.00 and gave the stock a “buy” rating in a research report on Wednesday, September 3rd. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, October 8th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $6.75.

Redwood Trust Trading Down 0.3%

RWT opened at $5.54 on Friday. The business’s 50 day moving average is $5.44 and its two-hundred day moving average is $5.74. The firm has a market cap of $701.18 million, a price-to-earnings ratio of -6.83 and a beta of 1.59. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.73. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $54.37 million during the quarter, compared to analysts’ expectations of $31.04 million. On average, research analysts predict that Redwood Trust will post 0.78 EPS for the current year.

Redwood Trust Announces Dividend

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

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in RWT. Quantbot Technologies LP purchased a new position in Redwood Trust during the first quarter valued at approximately $37,000. CWM LLC increased its position in Redwood Trust by 270.5% during the second quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock worth $36,000 after acquiring an additional 4,503 shares during the period. Russell Investments Group Ltd. raised its position in shares of Redwood Trust by 331.8% during the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after buying an additional 6,082 shares during the last quarter. AlphaQuest LLC lifted its position in shares of Redwood Trust by 165.5% in the 1st quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock worth $52,000 after acquiring an additional 5,354 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in Redwood Trust by 136.9% during the second quarter. Tower Research Capital LLC TRC now owns 10,823 shares of the real estate investment trust’s stock worth $64,000 after buying an additional 6,255 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors.

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.