Analysts Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $6.75

Redwood Trust, Inc. (NYSE:RWT) has been assigned an average rating of “Hold” from the seven analysts that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $6.75.

Several equities research analysts have recently weighed in on RWT shares. BTIG Research reissued a “buy” rating and issued a $8.50 target price on shares of Redwood Trust in a research note on Friday, September 26th. Wall Street Zen cut Redwood Trust from a “hold” rating to a “sell” rating in a research report on Saturday. Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, October 8th. Finally, Jones Trading dropped their price target on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research report on Thursday, October 30th.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP increased its position in Redwood Trust by 10.2% in the 3rd quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock valued at $86,969,000 after buying an additional 1,395,675 shares in the last quarter. Invesco Ltd. raised its stake in shares of Redwood Trust by 29.9% in the third quarter. Invesco Ltd. now owns 2,034,437 shares of the real estate investment trust’s stock worth $11,779,000 after purchasing an additional 468,720 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of Redwood Trust during the 1st quarter valued at about $2,018,000. Millennium Management LLC bought a new stake in Redwood Trust in the 3rd quarter valued at $1,300,000. Finally, Nomura Holdings Inc. raised its stake in shares of Redwood Trust by 220.3% in the second quarter. Nomura Holdings Inc. now owns 120,316 shares of the real estate investment trust’s stock valued at $711,000 after acquiring an additional 220,316 shares during the period. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Price Performance

Shares of NYSE RWT opened at $5.97 on Friday. The stock has a fifty day moving average of $5.51 and a 200-day moving average of $5.73. Redwood Trust has a fifty-two week low of $4.68 and a fifty-two week high of $6.73. The company has a debt-to-equity ratio of 22.73, a quick ratio of 57.77 and a current ratio of 57.77. The stock has a market cap of $755.65 million, a PE ratio of -7.36 and a beta of 1.58.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%.The business had revenue of $54.37 million during the quarter, compared to analysts’ expectations of $31.04 million. Equities research analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Tuesday, December 23rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 12.1%. The ex-dividend date was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio is presently -88.89%.

About Redwood Trust

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.