Redwood Trust (NYSE:RWT) Downgraded by StockNews.com to “Sell”

Redwood Trust (NYSE:RWT) was downgraded by analysts at StockNews.com from a “hold” rating to a “sell” rating in a report issued on Friday.

Several other equities research analysts have also commented on the stock. Wells Fargo & Company upped their price target on shares of Redwood Trust from $7.50 to $8.50 and gave the company an “equal weight” rating in a report on Friday, September 20th. Piper Sandler lifted their price objective on shares of Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a report on Monday, August 5th. Wedbush raised their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a report on Friday, August 2nd. Raymond James lifted their target price on shares of Redwood Trust from $8.50 to $9.50 and gave the company a “strong-buy” rating in a research report on Thursday, September 19th. Finally, JPMorgan Chase & Co. boosted their price objective on Redwood Trust from $7.50 to $8.00 and gave the stock an “overweight” rating in a research note on Thursday, October 17th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $8.19.

Redwood Trust Price Performance

Shares of RWT stock opened at $7.27 on Friday. The company has a debt-to-equity ratio of 13.75, a quick ratio of 50.47 and a current ratio of 50.47. Redwood Trust has a fifty-two week low of $5.45 and a fifty-two week high of $8.15. The firm has a market capitalization of $961.24 million, a price-to-earnings ratio of 13.22 and a beta of 1.59. The stock’s 50-day simple moving average is $7.59 and its 200-day simple moving average is $6.95.

Redwood Trust (NYSE:RWT) last issued 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 5.93% and a net margin of 12.59%. During the same quarter in the previous year, the company posted $0.14 earnings per share. As a group, equities analysts forecast that Redwood Trust will post 0.52 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC increased its holdings in shares of Redwood Trust by 65.4% during the 3rd quarter. GAMMA Investing LLC now owns 5,169 shares of the real estate investment trust’s stock worth $40,000 after buying an additional 2,043 shares during the last quarter. Concurrent Investment Advisors LLC purchased a new stake in shares of Redwood Trust in the 2nd quarter valued at $69,000. MQS Management LLC purchased a new stake in Redwood Trust during the first quarter worth about $72,000. Algert Global LLC acquired a new stake in Redwood Trust during the 2nd quarter worth approximately $86,000. Finally, Ameritas Investment Partners Inc. lifted its holdings in Redwood Trust by 26.5% during the 1st quarter. Ameritas Investment Partners Inc. now owns 14,324 shares of the real estate investment trust’s stock worth $91,000 after buying an additional 3,000 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors and hedge funds.

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.