Redwood Trust, Inc. (NYSE:RWT) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

by · The Markets Daily

Shares of Redwood Trust, Inc. (NYSE:RWT – Get Free Report) have earned a consensus recommendation of “Moderate Buy” from the nine ratings firms that are presently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $8.08.

A number of equities research analysts recently commented on the stock. JMP Securities upped their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the company a “market outperform” rating in a report on Friday, July 19th. Raymond James increased their target price on shares of Redwood Trust from $8.50 to $9.50 and gave the stock a “strong-buy” rating in a report on Thursday, September 19th. JPMorgan Chase & Co. raised their target price on Redwood Trust from $7.00 to $7.50 and gave the stock an “overweight” rating in a research note on Tuesday, July 16th. Wedbush upped their price target on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a research report on Friday, August 2nd. Finally, Wells Fargo & Company lifted their price objective on Redwood Trust from $7.50 to $8.50 and gave the stock an “equal weight” rating in a research report on Friday, September 20th.

Read Our Latest Analysis on Redwood Trust

Institutional Investors Weigh In On Redwood Trust

Several hedge funds have recently made changes to their positions in the company. Wellington Management Group LLP boosted its holdings in shares of Redwood Trust by 164.4% during the 4th quarter. Wellington Management Group LLP now owns 11,314,715 shares of the real estate investment trust’s stock valued at $83,842,000 after buying an additional 7,035,524 shares in the last quarter. Vanguard Group Inc. boosted its stake in Redwood Trust by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 12,973,503 shares of the real estate investment trust’s stock worth $96,134,000 after acquiring an additional 78,222 shares in the last quarter. Quadrature Capital Ltd grew its holdings in Redwood Trust by 122.8% in the fourth quarter. Quadrature Capital Ltd now owns 40,374 shares of the real estate investment trust’s stock worth $299,000 after purchasing an additional 22,254 shares during the period. State of Alaska Department of Revenue increased its stake in shares of Redwood Trust by 9.8% during the first quarter. State of Alaska Department of Revenue now owns 80,107 shares of the real estate investment trust’s stock valued at $510,000 after purchasing an additional 7,123 shares in the last quarter. Finally, Insight Folios Inc increased its stake in shares of Redwood Trust by 4.6% during the first quarter. Insight Folios Inc now owns 89,028 shares of the real estate investment trust’s stock valued at $567,000 after purchasing an additional 3,917 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors.

Redwood Trust Stock Down 0.9 %

RWT opened at $7.49 on Friday. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.15. The company has a current ratio of 50.47, a quick ratio of 50.47 and a debt-to-equity ratio of 12.97. The business’s 50-day moving average price is $7.43 and its 200-day moving average price is $6.74. The company has a market cap of $989.67 million, a P/E ratio of 106.93 and a beta of 1.58.

Redwood Trust (NYSE:RWT – Get Free Report) last announced its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a return on equity of 4.93% and a net margin of 4.45%. During the same period in the previous year, the company posted $0.14 EPS. On average, equities analysts expect that Redwood Trust will post 0.5 EPS for the current year.

Redwood Trust Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Monday, September 23rd were given a $0.17 dividend. The ex-dividend date was Monday, September 23rd. This represents a $0.68 annualized dividend and a dividend yield of 9.08%. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.16. Redwood Trust’s dividend payout ratio is currently 971.43%.

About Redwood Trust

(Get Free Report

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.

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