Redwood Trust (NYSE:RWT) Hits New 1-Year High – Should You Buy?

Redwood Trust, Inc. (NYSE:RWT)’s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $6.88 and last traded at $6.9350, with a volume of 1596605 shares changing hands. The stock had previously closed at $5.54.

Trending Headlines about Redwood Trust

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Company reported record Mortgage Banking production of $7.3 billion for 2025, which management said drove higher production revenues and earnings growth; this operational momentum is the primary driver of the rally. Business Wire Release
• Positive Sentiment: Several outlets highlight sizable revenue upside for the quarter (reported revenue ~ $87.3M vs. lower consensus), signaling strong mortgage?banking fee and production income that supports near?term earnings. MarketBeat Summary
• Positive Sentiment: Some analysts (Zacks) reported an EPS beat (Zacks: $0.33 vs. $0.23 estimate), which reinforces the view that platform revenue strength is translating into better-than-expected profitability metrics for the quarter. Zacks Beat Article
• Neutral Sentiment: Management commentary and the earnings presentation provide color on origination pipelines, funding strategies and platform scale — useful for gauging sustainability but not a clear directional change alone. Earnings Presentation Earnings Call Transcript
• Neutral Sentiment: Press coverage and snapshots (TipRanks, local business press) echo the record-platform message; they help investor understanding but largely repeat the company release. TipRanks Announcement
• Negative Sentiment: There are mixed headline numbers across reports: one summary shows EPS slightly below consensus ($0.20 vs. $0.22) and a negative net margin, which could concern investors focused on bottom?line consistency and profitability trends. MarketBeat Earnings Snapshot
• Negative Sentiment: Disparate metric reporting and a historically lumpy mortgage?banking business can widen intraday swings; expect volatility as investors digest which figures (revenue vs. EPS) are most indicative of sustainable earnings. Stamford Advocate Snapshot

Wall Street Analyst Weigh In

Several research firms have issued reports on RWT. Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. Wall Street Zen cut Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. JPMorgan Chase & Co. raised Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target for the company in a report on Friday, January 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. Finally, Jones Trading decreased their price target on shares of Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research note on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $6.75.

Redwood Trust Stock Performance

The company has a 50 day simple moving average of $5.63 and a 200 day simple moving average of $5.68. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73. The stock has a market cap of $856.48 million, a price-to-earnings ratio of -8.31 and a beta of 1.59.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 10.6%. The ex-dividend date of this dividend was Tuesday, December 23rd. Redwood Trust’s payout ratio is presently -88.89%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Inceptionr LLC grew its position in Redwood Trust by 150.1% during the 4th quarter. Inceptionr LLC now owns 65,963 shares of the real estate investment trust’s stock worth $365,000 after acquiring an additional 39,586 shares during the last quarter. Deutsche Bank AG boosted its stake in shares of Redwood Trust by 7.9% during the fourth quarter. Deutsche Bank AG now owns 93,788 shares of the real estate investment trust’s stock valued at $519,000 after purchasing an additional 6,841 shares in the last quarter. Fox Run Management L.L.C. acquired a new stake in shares of Redwood Trust during the fourth quarter valued at about $140,000. Franklin Resources Inc. grew its holdings in shares of 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 worth $446,000 after purchasing an additional 12,405 shares during the last quarter. Finally, Clear Harbor Asset Management LLC increased its stake in shares of Redwood Trust by 4.5% in the fourth quarter. Clear Harbor Asset Management LLC now owns 218,125 shares of the real estate investment trust’s stock valued at $1,206,000 after buying an additional 9,400 shares during the period. 74.34% of the stock is currently owned by 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.