Redwood Trust, Inc. (NYSE:RWT) Declares Dividend Increase – $0.17 Per Share

Redwood Trust, Inc. (NYSE:RWT) announced a quarterly dividend on Wednesday, September 11th, RTT News reports. Investors of record on Monday, September 23rd will be given a dividend of 0.17 per share by the real estate investment trust on Monday, September 30th. This represents a $0.68 dividend on an annualized basis and a yield of 8.58%. The ex-dividend date is Monday, September 23rd. This is an increase from Redwood Trust’s previous quarterly dividend of $0.16.

Redwood Trust has a dividend payout ratio of 91.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect Redwood Trust to earn $0.74 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 91.9%.

Redwood Trust Stock Down 1.6 %

Shares of NYSE RWT opened at $7.93 on Friday. The company has a quick ratio of 50.47, a current ratio of 50.47 and a debt-to-equity ratio of 12.97. The stock has a market capitalization of $1.05 billion, a PE ratio of 113.29 and a beta of 1.58. The firm has a fifty day moving average of $7.37 and a 200-day moving average of $6.64. Redwood Trust has a 52-week low of $5.45 and a 52-week high of $8.15.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, topping the consensus estimate 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 quarter last year, the firm earned $0.14 earnings per share. On average, analysts anticipate that Redwood Trust will post 0.5 EPS for the current year.

Analysts Set New Price Targets

Several research firms recently commented on RWT. Wells Fargo & Company raised 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. Wedbush raised their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a research note 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 report on Thursday. Piper Sandler increased their price target on Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a report on Monday, August 5th. Finally, JMP Securities boosted their price target on Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a research report on Friday, July 19th. Four equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $8.08.

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.