Redwood Trust (NYSE:RWT) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of Redwood Trust (NYSE:RWT) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday,Zacks.com reports.

RWT has been the subject of a number of other reports. JPMorgan Chase & Co. cut their price target on Redwood Trust from $6.50 to $6.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Keefe, Bruyette & Woods upgraded shares of Redwood Trust from a “market perform” rating to an “outperform” rating and decreased their price target for the company from $7.00 to $6.00 in a report on Thursday, July 9th. BTIG Research decreased their target price on Redwood Trust from $8.50 to $6.00 and set a “buy” rating for the company in a report on Wednesday, June 17th. Citizens Jmp lowered their price target on Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a report on Wednesday, July 8th. Finally, JonesTrading reissued a “buy” rating and set a $6.25 target price on shares of Redwood Trust in a research report on Thursday, April 30th. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $6.11.

Redwood Trust Trading Up 1.1%

NYSE:RWT opened at $5.08 on Tuesday. The company has a quick ratio of 59.63, a current ratio of 59.63 and a debt-to-equity ratio of 28.42. The company has a market capitalization of $636.74 million, a PE ratio of -6.52 and a beta of 1.37. The stock has a fifty day simple moving average of $5.08 and a 200-day simple moving average of $5.54. Redwood Trust has a 52-week low of $4.19 and a 52-week high of $6.97.

Redwood Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd were given a $0.18 dividend. The ex-dividend date was Tuesday, June 23rd. This represents a $0.72 annualized dividend and a yield of 14.2%. Redwood Trust’s dividend payout ratio (DPR) is currently -92.31%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Clearstead Advisors LLC lifted its stake in shares of Redwood Trust by 192.5% in the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 3,572 shares during the period. Russell Investments Group Ltd. raised its holdings in 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 worth $47,000 after buying an additional 6,082 shares during the period. Westbourne Investments Inc. purchased a new stake in shares of Redwood Trust in the 4th quarter valued at approximately $55,000. Bank of Marin acquired a new stake in shares of Redwood Trust in the fourth quarter worth $58,000. Finally, Abel Hall LLC purchased a new position in Redwood Trust during the 4th quarter valued at about $58,000. 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.