Pinnacle Associates Ltd. Acquires New Stake in Redwood Trust, Inc. (NYSE:RWT)

Pinnacle Associates Ltd. acquired a new stake in shares of Redwood Trust, Inc. (NYSE:RWT) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 11,132 shares of the real estate investment trust’s stock, valued at approximately $68,000.

A number of other hedge funds also recently bought and sold shares of RWT. Zacks Investment Management purchased a new stake in Redwood Trust in the fourth quarter worth about $74,000. Tower Research Capital LLC TRC increased its position in Redwood Trust by 239.3% in the fourth quarter. Tower Research Capital LLC TRC now owns 12,566 shares of the real estate investment trust’s stock worth $82,000 after buying an additional 8,863 shares in the last quarter. Cetera Investment Advisers purchased a new stake in Redwood Trust in the fourth quarter worth about $95,000. Westbourne Investments Inc. purchased a new stake in Redwood Trust in the fourth quarter worth about $111,000. Finally, Teacher Retirement System of Texas purchased a new stake in Redwood Trust in the first quarter worth about $118,000. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on RWT shares. Keefe, Bruyette & Woods cut Redwood Trust from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $7.00 to $6.50 in a research report on Thursday, July 10th. JMP Securities dropped their price objective on Redwood Trust from $8.00 to $7.50 and set a “market outperform” rating for the company in a research note on Thursday, April 17th. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a research note on Thursday, May 22nd. JPMorgan Chase & Co. upped their price objective on Redwood Trust from $5.50 to $6.00 and gave the stock a “neutral” rating in a research note on Thursday, May 1st. Finally, UBS Group upped their price objective on Redwood Trust from $6.50 to $7.00 and gave the stock a “buy” rating in a research note on Monday, May 5th. Six analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $7.39.

Redwood Trust Price Performance

Shares of Redwood Trust stock opened at $6.06 on Wednesday. The stock has a 50 day moving average of $5.80 and a 200 day moving average of $6.01. Redwood Trust, Inc. has a 12 month low of $4.68 and a 12 month high of $8.15. The firm has a market cap of $806.04 million, a PE ratio of 27.52 and a beta of 1.30. 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 announced its quarterly 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 firm had revenue of $73.80 million for the quarter, compared to the consensus estimate of $26.55 million. On average, research analysts expect that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 11.89%. The ex-dividend date of this dividend was Monday, June 23rd. Redwood Trust’s payout ratio is presently 327.27%.

Redwood Trust Company Profile

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.