Redwood Trust (NYSE:RWT) Director Greg Kubicek Buys 50,000 Shares of Stock

Redwood Trust, Inc. (NYSE:RWT) Director Greg Kubicek purchased 50,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were bought at an average cost of $3.85 per share, with a total value of $192,500.00. Following the purchase, the director directly owned 127,185 shares of the company’s stock, valued at approximately $489,662.25. This represents a 64.78% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink.

Redwood Trust Stock Up 2.5%

NYSE:RWT opened at $3.92 on Wednesday. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. The firm has a market cap of $493.02 million, a PE ratio of -98.10 and a beta of 1.37. The company has a 50-day moving average of $4.67 and a 200 day moving average of $5.19. Redwood Trust, Inc. has a 1-year low of $3.22 and a 1-year high of $6.97.

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

Redwood Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 18.3%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust’s payout ratio is currently -1,800.00%.

Analyst Ratings Changes

RWT has been the subject of a number of recent analyst reports. Zacks Research cut Redwood Trust from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 21st. Citizens Jmp reduced their target price on 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. JPMorgan Chase & Co. decreased their price target 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. UBS Group decreased 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. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a report on Wednesday, June 24th. Six analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Redwood Trust presently has a consensus rating of “Hold” and an average price target of $5.84.

Key Redwood Trust News

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Redwood Trust completed a private offering of $205 million of 7.00% convertible notes along with a related restructuring. The transaction should provide additional liquidity and financial flexibility, although the conversion feature could create future share dilution. Redwood Trust Completes Convertible Notes Offering and Restructuring
• Positive Sentiment: Company insiders made substantial open-market purchases near $3.84-$3.85 per share. CEO Christopher J. Abate bought 100,000 shares, CFO Brooke Carillo purchased 26,065 shares, and Director Greg H. Kubicek acquired 50,000 shares. The purchases increased their respective holdings and may signal that management and the board view the stock as undervalued. CEO Insider Purchase
• Neutral Sentiment: Investor Bradley L. Radoff urged Redwood Trust’s board to explore a sale of the company. A potential sale could unlock value for shareholders, but the proposal also highlights pressure on the board and does not guarantee a transaction will occur. Investor Urges Redwood Trust to Explore a Sale
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target from $5.50 to $4.75, reflecting reduced expectations despite maintaining an “outperform” rating. The target cut may weigh on sentiment, although it still implies meaningful upside from recent trading levels. Keefe, Bruyette & Woods Price Target Update

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp lifted its stake in shares of Redwood Trust by 0.4% during 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 buying an additional 2,627 shares during the period. Bank of America Corp DE grew its holdings in shares of Redwood Trust by 66.4% during the first quarter. Bank of America Corp DE now owns 395,286 shares of the real estate investment trust’s stock valued at $2,218,000 after buying an additional 157,795 shares during the last quarter. Quantinno Capital Management LP increased its position in shares of Redwood Trust by 22.7% in the 1st quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock valued at $2,098,000 after acquiring an additional 69,173 shares during the period. Legal & General Group Plc acquired a new position in shares of Redwood Trust in the 2nd quarter valued at $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Redwood Trust by 7,932.1% in 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 during the last quarter. Hedge funds and other institutional investors own 74.34% of the company’s stock.

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.