Wedbush Weighs in on Redwood Trust, Inc.’s Q1 2025 Earnings (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) – Equities researchers at Wedbush issued their Q1 2025 EPS estimates for Redwood Trust in a research note issued to investors on Thursday, October 10th. Wedbush analyst J. Mccanless anticipates that the real estate investment trust will post earnings of $0.16 per share for the quarter. Wedbush has a “Neutral” rating and a $7.00 price objective on the stock. The consensus estimate for Redwood Trust’s current full-year earnings is $0.50 per share. Wedbush also issued estimates for Redwood Trust’s Q2 2025 earnings at $0.17 EPS, Q3 2025 earnings at $0.19 EPS, Q4 2025 earnings at $0.18 EPS, FY2025 earnings at $0.70 EPS and FY2026 earnings at $0.80 EPS.

Other analysts have also recently issued reports about the company. Raymond James boosted their price objective on Redwood Trust from $8.50 to $9.50 and gave the stock a “strong-buy” rating in a report on Thursday, September 19th. JMP Securities upped their price target on Redwood Trust from $8.50 to $9.00 and gave the company a “market outperform” rating in a research note on Friday, October 4th. JPMorgan Chase & Co. upped their price target on Redwood Trust from $7.00 to $7.50 and gave the company an “overweight” rating in a research note on Tuesday, July 16th. Piper Sandler upped their price target on Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a research note on Monday, August 5th. Finally, Wells Fargo & Company boosted their price objective on Redwood Trust from $7.50 to $8.50 and gave the company an “equal weight” rating in a research report on Friday, September 20th. Three research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $8.14.

Redwood Trust Stock Performance

Redwood Trust stock opened at $7.45 on Monday. The stock has a 50-day simple moving average of $7.46 and a 200 day simple moving average of $6.80. The company has a quick ratio of 50.47, a current ratio of 50.47 and a debt-to-equity ratio of 12.97. Redwood Trust has a 12-month low of $5.45 and a 12-month high of $8.15. The stock has a market capitalization of $985.04 million, a price-to-earnings ratio of 43.82 and a beta of 1.58.

Redwood Trust (NYSE:RWT) last issued its earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, beating the consensus estimate 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 prior year, the firm posted $0.14 EPS.

Redwood Trust Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Monday, September 23rd were issued a dividend of $0.17 per share. The ex-dividend date was Monday, September 23rd. This represents a $0.68 annualized dividend and a yield of 9.13%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.16. Redwood Trust’s dividend payout ratio is 400.00%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RWT. Wellington Management Group LLP lifted 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 valued at $83,842,000 after buying an additional 7,035,524 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Redwood Trust by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 12,973,503 shares of the real estate investment trust’s stock valued at $96,134,000 after buying an additional 78,222 shares during the last quarter. Quadrature Capital Ltd lifted its position in shares of Redwood Trust by 122.8% during the 4th quarter. Quadrature Capital Ltd now owns 40,374 shares of the real estate investment trust’s stock valued at $299,000 after buying an additional 22,254 shares during the last quarter. State of Alaska Department of Revenue lifted its holdings in Redwood Trust by 9.8% during the 1st quarter. State of Alaska Department of Revenue now owns 80,107 shares of the real estate investment trust’s stock worth $510,000 after purchasing an additional 7,123 shares in the last quarter. Finally, Insight Folios Inc lifted its holdings in Redwood Trust by 4.6% during the 1st quarter. Insight Folios Inc now owns 89,028 shares of the real estate investment trust’s stock worth $567,000 after purchasing an additional 3,917 shares in the last quarter. 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.