Redwood Trust, Inc. (NYSE:RWT) Receives $7.44 Average Price Target from Brokerages

Shares of Redwood Trust, Inc. (NYSE:RWT) have been given an average recommendation of “Moderate Buy” by the nine ratings firms that are currently covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $7.44.

A number of research analysts have commented on the stock. UBS Group raised their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a research report on Monday, May 5th. JPMorgan Chase & Co. lifted their price target on Redwood Trust from $5.50 to $6.00 and gave the company a “neutral” rating in a report on Thursday, May 1st. Jones Trading restated a “buy” rating and issued a $7.00 price target on shares of Redwood Trust in a report on Friday, May 2nd. Wall Street Zen raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Thursday, May 22nd. Finally, Keefe, Bruyette & Woods lowered their price target on Redwood Trust from $7.75 to $7.00 and set an “outperform” rating for the company in a report on Tuesday, May 6th.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds and other institutional investors have recently made changes to their positions in RWT. LaSalle St. Investment Advisors LLC purchased a new stake in shares of Redwood Trust in the fourth quarter valued at approximately $37,000. Quantbot Technologies LP acquired a new position in Redwood Trust in the first quarter valued at approximately $37,000. AlphaQuest LLC increased its stake in Redwood Trust by 165.5% during the first 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 last quarter. Carrera Capital Advisors purchased a new position in shares of Redwood Trust during the 1st quarter worth $65,000. Finally, XTX Topco Ltd purchased a new stake in Redwood Trust in the 1st quarter valued at about $65,000. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Redwood Trust Price Performance

RWT stock opened at $6.01 on Tuesday. The stock has a market cap of $800.05 million, a PE ratio of 27.32 and a beta of 1.30. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $8.15. The company has a 50-day moving average price of $5.77 and a 200 day moving average price of $6.08. The company has a current ratio of 39.35, a quick ratio of 39.35 and a debt-to-equity ratio of 16.32.

Redwood Trust (NYSE:RWT) last released its earnings results on Wednesday, April 30th. The real estate investment trust reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.03). Redwood Trust had a net margin of 3.93% and a return on equity of 7.82%. The business had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. Equities research analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 11.98%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust’s payout ratio is 327.27%.

About Redwood Trust

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.