Redwood Trust, Inc. (NYSE:RWT) Receives $8.19 Average PT from Brokerages

Redwood Trust, Inc. (NYSE:RWT) has earned an average rating of “Moderate Buy” from the nine analysts that are covering the firm, MarketBeat.com reports. Three 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 target price among brokerages that have issued ratings on the stock in the last year is $8.19.

RWT has been the subject of a number of recent analyst reports. JMP Securities boosted their price objective on shares of Redwood Trust from $8.50 to $9.00 and gave the stock a “market outperform” rating in a report on Friday, October 4th. Piper Sandler boosted their price target on Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research note on Monday, August 5th. Wedbush upped their price target on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a report on Friday, August 2nd. Wells Fargo & Company lifted their price objective on Redwood Trust from $7.50 to $8.50 and gave the stock an “equal weight” rating in a report on Friday, September 20th. Finally, Raymond James upped 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 note on Thursday, September 19th.

Redwood Trust Price Performance

Shares of NYSE:RWT opened at $7.52 on Thursday. The company has a market capitalization of $993.79 million, a PE ratio of 107.43 and a beta of 1.58. The business has a fifty day moving average price of $7.57 and a 200-day moving average price of $6.89. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15. 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 data on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share 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 quarter last year, the company posted $0.14 earnings per share. As a group, equities analysts expect that Redwood Trust will post 0.52 EPS for the current fiscal year.

Redwood Trust Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Monday, September 23rd were given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 9.04%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.16. The ex-dividend date was Monday, September 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently 971.43%.

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its stake in 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 acquiring an additional 2,043 shares during the period. Concurrent Investment Advisors LLC bought a new stake in shares of Redwood Trust during the 2nd quarter valued at $69,000. MQS Management LLC purchased a new position in shares of Redwood Trust during the 1st quarter valued at $72,000. Algert Global LLC bought a new position in Redwood Trust in the 2nd quarter worth $86,000. Finally, Ameritas Investment Partners Inc. increased its stake in 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 worth $91,000 after buying an additional 3,000 shares in the last quarter. 74.34% of the stock is owned by hedge funds and other institutional investors.

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.