Redwood Trust (NYSE:RWT) Reaches New 1-Year Low – Time to Sell?

Redwood Trust, Inc. (NYSE:RWT)’s stock price reached a new 52-week low on Monday . The company traded as low as $4.99 and last traded at $4.9950, with a volume of 705894 shares changing hands. The stock had previously closed at $5.16.

Analyst Ratings Changes

A number of brokerages recently issued reports on RWT. Piper Sandler raised their target price on shares of Redwood Trust from $6.00 to $6.50 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. BTIG Research cut their price target on Redwood Trust from $8.50 to $6.00 and set a “buy” rating for the company in a report on Wednesday, June 17th. Zacks Research lowered Redwood Trust from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Wall Street Zen upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, JonesTrading reaffirmed a “buy” rating and issued a $6.25 price objective on shares of Redwood Trust in a research report on Thursday, April 30th. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $6.54.

Redwood Trust Stock Down 4.2%

The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42. The firm has a market capitalization of $619.21 million, a PE ratio of -6.34 and a beta of 1.37. The firm has a 50-day moving average of $5.47 and a two-hundred day moving average of $5.65.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 23rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 14.6%. The ex-dividend date of this dividend is Tuesday, June 23rd. Redwood Trust’s payout ratio is currently -92.31%.

Institutional Trading of Redwood Trust

Institutional investors and hedge funds have recently bought and sold shares of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Redwood Trust by 26.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock valued at $2,990,000 after buying an additional 103,893 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of Redwood Trust in the first quarter worth $2,018,000. Strs Ohio purchased a new position in shares of Redwood Trust in the 1st quarter valued at $149,000. XTX Topco Ltd raised its stake in shares of Redwood Trust by 35.4% in the 2nd quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock valued at $86,000 after acquiring an additional 3,795 shares during the period. Finally, Russell Investments Group Ltd. lifted its holdings in shares of Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 6,082 shares in the last quarter. Institutional investors and hedge funds own 74.34% of the company’s stock.

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.