Redwood Trust (NYSE:RWT) Sees Unusually-High Trading Volume – Here’s What Happened

Shares of Redwood Trust, Inc. (NYSE:RWT) saw unusually-high trading volume on Tuesday . Approximately 1,819,727 shares traded hands during mid-day trading, an increase of 12% from the previous session’s volume of 1,620,837 shares.The stock last traded at $4.7380 and had previously closed at $4.55.

Analyst Upgrades and Downgrades

RWT has been the subject of several analyst reports. Citizens Jmp cut their price target on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a report on Wednesday. BTIG Research decreased their price objective on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a research note on Wednesday, June 17th. Keefe, Bruyette & Woods raised shares of Redwood Trust from a “market perform” rating to an “outperform” rating and dropped their price objective for the stock from $7.00 to $6.00 in a report on Thursday. Wall Street Zen upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, June 24th. Six investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Redwood Trust has an average rating of “Moderate Buy” and a consensus target price of $6.11.

Redwood Trust Stock Performance

The company has a debt-to-equity ratio of 28.42, a current ratio of 59.63 and a quick ratio of 59.63. The firm has a market capitalization of $596.55 million, a P/E ratio of -6.11 and a beta of 1.37. The stock’s 50 day moving average is $5.17 and its two-hundred day moving average is $5.57.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 15.1%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust’s payout ratio is currently -92.31%.

Institutional Trading of Redwood Trust

Institutional investors and hedge funds have recently made changes to their positions in the business. Tran Capital Management L.P. acquired a new stake in shares of Redwood Trust during the fourth quarter worth $2,947,000. Evergreen Capital Management LLC lifted its stake in Redwood Trust by 52.8% in the fourth quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust’s stock valued at $9,257,000 after buying an additional 578,301 shares during the period. UBS Group AG lifted its stake in Redwood Trust by 521.1% in the fourth quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock valued at $21,430,000 after buying an additional 3,251,302 shares during the period. Counterpoint Mutual Funds LLC bought a new position in Redwood Trust during the first quarter worth about $876,000. Finally, GAMMA Investing LLC boosted its holdings in Redwood Trust by 71.6% during the fourth quarter. GAMMA Investing LLC now owns 11,054 shares of the real estate investment trust’s stock worth $61,000 after buying an additional 4,611 shares during the last quarter. Institutional investors own 74.34% of the company’s stock.

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.