Redwood Trust, Inc. (NYSE:RWT) Receives $7.81 Average Target Price from Analysts

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 firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $7.81.

Several analysts recently issued reports on RWT shares. Wedbush raised their target price on Redwood Trust from $6.50 to $7.00 and gave the stock a “neutral” rating in a research note on Friday, August 2nd. JMP Securities upped their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a research note on Friday, July 19th. JPMorgan Chase & Co. raised their price target on shares of Redwood Trust from $7.00 to $7.50 and gave the company an “overweight” rating in a research report on Tuesday, July 16th. Finally, Piper Sandler increased their target price on Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a research note on Monday, August 5th.

Redwood Trust Stock Performance

Shares of RWT opened at $7.39 on Wednesday. Redwood Trust has a 12-month low of $5.45 and a 12-month high of $8.00. 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 company has a market cap of $977.11 million, a PE ratio of 105.57 and a beta of 1.58. The stock has a 50-day moving average price of $7.11 and a 200-day moving average price of $6.52.

Redwood Trust (NYSE:RWT) last released its earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, beating 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 firm earned $0.14 EPS. As a group, equities analysts forecast that Redwood Trust will post 0.5 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 21st were given a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, June 21st. This represents a $0.64 dividend on an annualized basis and a dividend yield of 8.66%. Redwood Trust’s payout ratio is 914.29%.

Institutional Investors Weigh In On Redwood Trust

A number of hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP grew its position 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 worth $83,842,000 after buying an additional 7,035,524 shares in the last quarter. Vanguard Group Inc. lifted its position in Redwood Trust by 19.5% during the 1st quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after acquiring an additional 2,530,937 shares during the period. Mesirow Institutional Investment Management Inc. acquired a new position in shares of Redwood Trust in the fourth quarter valued at about $13,246,000. Ceredex Value Advisors LLC raised its stake in shares of Redwood Trust by 48.8% in the second quarter. Ceredex Value Advisors LLC now owns 906,512 shares of the real estate investment trust’s stock worth $5,883,000 after purchasing an additional 297,100 shares during the last quarter. Finally, Van ECK Associates Corp lifted its holdings in shares of Redwood Trust by 21.7% during the second quarter. Van ECK Associates Corp now owns 976,283 shares of the real estate investment trust’s stock worth $6,336,000 after purchasing an additional 174,317 shares during the period. Hedge funds and other institutional investors own 74.34% of the company’s stock.

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.