Redwood Trust (NYSE:RWT) Posts Earnings Results, Misses Estimates By $0.02 EPS

Redwood Trust (NYSE:RWT) issued its quarterly earnings data on Wednesday. The real estate investment trust reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02), FiscalAI reports. Redwood Trust had a positive return on equity of 9.19% and a negative net margin of 8.62%.The company had revenue of $87.30 million for the quarter, compared to the consensus estimate of $24.88 million.

Redwood Trust Stock Performance

Shares of NYSE RWT traded down $0.07 during trading on Wednesday, reaching $5.56. 1,121,283 shares of the company traded hands, compared to its average volume of 1,335,929. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73. Redwood Trust has a 52-week low of $4.68 and a 52-week high of $6.70. The stock has a market capitalization of $703.71 million, a PE ratio of -6.86 and a beta of 1.59. The firm has a 50 day simple moving average of $5.64 and a 200-day simple moving average of $5.68.

Redwood Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 13.0%. The ex-dividend date was Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -88.89%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on RWT. Jones Trading reduced their target price on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research report on Thursday, October 30th. JPMorgan Chase & Co. upgraded Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a research report on Friday, January 23rd. Wall Street Zen cut shares of Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday. Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $6.75.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors and hedge funds have recently bought and sold shares of RWT. Deutsche Bank AG boosted its stake in shares of Redwood Trust by 7.9% in the fourth quarter. Deutsche Bank AG now owns 93,788 shares of the real estate investment trust’s stock worth $519,000 after acquiring an additional 6,841 shares during the period. Fox Run Management L.L.C. bought a new stake in shares of Redwood Trust in the 4th quarter worth about $140,000. Franklin Resources Inc. raised its position in Redwood Trust by 18.2% during the fourth quarter. Franklin Resources Inc. now owns 80,730 shares of the real estate investment trust’s stock valued at $446,000 after purchasing an additional 12,405 shares during the period. PNC Financial Services Group Inc. raised its holdings in Redwood Trust by 106.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 15,062 shares of the real estate investment trust’s stock valued at $83,000 after buying an additional 7,767 shares during the period. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Redwood Trust in the 3rd quarter worth about $82,000. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Redwood Trust Company Profile

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.