Arizona State Retirement System Increases Stake in Redwood Trust, Inc. (NYSE:RWT)

Arizona State Retirement System lifted its stake in Redwood Trust, Inc. (NYSE:RWT) by 13.0% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 36,834 shares of the real estate investment trust’s stock after purchasing an additional 4,230 shares during the quarter. Arizona State Retirement System’s holdings in Redwood Trust were worth $239,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Concurrent Investment Advisors LLC purchased a new position in shares of Redwood Trust in the 2nd quarter valued at approximately $69,000. MQS Management LLC purchased a new position in shares of Redwood Trust in the 1st quarter valued at approximately $72,000. Ameritas Investment Partners Inc. raised its position in shares of Redwood Trust by 26.5% in the 1st quarter. Ameritas Investment Partners Inc. now owns 14,324 shares of the real estate investment trust’s stock valued at $91,000 after purchasing an additional 3,000 shares during the last quarter. Quest Partners LLC acquired a new position in Redwood Trust in the 4th quarter worth approximately $107,000. Finally, Raymond James Trust N.A. increased its holdings in Redwood Trust by 53.5% in the 2nd quarter. Raymond James Trust N.A. now owns 18,118 shares of the real estate investment trust’s stock worth $118,000 after buying an additional 6,318 shares during the period. 74.34% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Piper Sandler increased their price target on shares of Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a report on Monday, August 5th. Wedbush increased their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a “neutral” rating in a report on Friday, August 2nd. JPMorgan Chase & Co. increased their price target on shares of Redwood Trust from $7.00 to $7.50 and gave the stock an “overweight” rating in a report on Tuesday, July 16th. Finally, JMP Securities increased their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a report on Friday, July 19th. Four investment 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 stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $7.81.

Redwood Trust Price Performance

Shares of NYSE RWT opened at $7.95 on Wednesday. The stock has a market capitalization of $1.05 billion, a price-to-earnings ratio of 113.57 and a beta of 1.58. Redwood Trust, Inc. has a 12 month low of $5.45 and a 12 month high of $8.14. The firm’s 50 day simple moving average is $7.31 and its 200-day simple moving average is $6.61. The company has a debt-to-equity ratio of 12.97, a current ratio of 50.47 and a quick ratio of 50.47.

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

Redwood Trust Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Monday, September 23rd will be paid a $0.17 dividend. The ex-dividend date is Monday, September 23rd. This represents a $0.68 dividend on an annualized basis and a yield of 8.55%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.16. Redwood Trust’s dividend payout ratio (DPR) is currently 971.43%.

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.