Redwood Trust, Inc. (NYSE:RWT) Stock Has Average Price Target of $5.25

Redwood Trust, Inc. (NYSE:RWT) has earned a consensus recommendation of “Hold” from the eleven brokerages that are currently covering the firm, Marketbeat reports. Two analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and seven have assigned a buy recommendation to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $5.25.

A number of research firms recently commented on RWT. Citigroup reaffirmed a “market outperform” rating on shares of Redwood Trust in a research note on Thursday, October 15th. Piper Sandler reduced their price objective on shares of Redwood Trust from $5.25 to $3.75 and set a “neutral” rating for the company in a report on Friday, October 9th. BTIG Research dropped their target price on shares of Redwood Trust from $6.00 to $5.00 and set a “buy” rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Monday, September 21st. Finally, Keefe, Bruyette & Woods decreased their target price on Redwood Trust from $5.50 to $4.75 and set an “outperform” rating on the stock in a research note on Monday, September 14th.

Insider Transactions at Redwood Trust

In other news, President Dashiell I. Robinson purchased 63,211 shares of the stock in a transaction dated Wednesday, September 16th. The shares were purchased at an average cost of $3.98 per share, with a total value of $251,579.78. Following the acquisition, the president directly owned 395,050 shares of the company’s stock, valued at $1,572,299. This represents a 19.05% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Brooke Carillo acquired 26,065 shares of Redwood Trust stock in a transaction dated Tuesday, September 15th. The stock was bought at an average price of $3.85 per share, with a total value of $100,350.25. Following the completion of the purchase, the chief financial officer directly owned 140,481 shares in the company, valued at $540,851.85. This represents a 22.78% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have purchased 244,171 shares of company stock valued at $948,402. Company insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Redwood Trust

Several institutional investors have recently bought and sold shares of RWT. Range Financial Group LLC purchased a new stake in shares of Redwood Trust in the third quarter valued at $43,000. Optiver Holding B.V. grew its position in shares of Redwood Trust by 2,034.5% in the 1st quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust’s stock worth $60,000 after buying an additional 10,274 shares during the last quarter. Evanson Financial LLC acquired a new stake in Redwood Trust in the second quarter worth about $66,000. Abel Hall LLC acquired a new stake in shares of Redwood Trust during the third quarter worth about $73,000. Finally, Quotient Wealth Partners LLC purchased a new stake in shares of Redwood Trust in the 1st quarter valued at $76,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Price Performance

Shares of RWT stock opened at $3.10 on Tuesday. The firm has a fifty day moving average of $3.93 and a 200-day moving average of $4.75. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. The firm has a market capitalization of $390.02 million, a price-to-earnings ratio of 2.84 and a beta of 1.45. Redwood Trust has a 12-month low of $2.88 and a 12-month high of $6.97.

Redwood Trust (NYSE:RWT) last released its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%. The firm had revenue of $56.01 million for the quarter, compared to analysts’ expectations of $89.45 million. On average, equities research analysts forecast that Redwood Trust will post 0.96 earnings per share for the current year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 23rd were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $0.72 annualized dividend and a dividend yield of 23.2%. Redwood Trust’s payout ratio is -1,800.00%.

About Redwood Trust

Redwood Trust, Inc is a specialty finance company and real estate investment trust headquartered in Mill Valley, California. Founded in 1994 and traded on the New York Stock Exchange under the symbol RWT, the company focuses on investing in and financing residential real estate credit.

Redwood Trust’s activities include acquiring, originating, securitizing and managing residential mortgage loans and related assets. Its portfolio has historically included jumbo and other non-agency residential mortgages, mortgage-backed securities, mortgage servicing rights and other residential credit investments.