Brokerages Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $6.00

Redwood Trust, Inc. (NYSE:RWT) has earned a consensus recommendation of “Hold” from the eleven analysts that are currently covering the company, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and six have given a buy recommendation to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $6.00.

A number of analysts have recently weighed in on RWT shares. Citizens Jmp reduced their price objective on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a research note on Wednesday, July 8th. JPMorgan Chase & Co. reduced their price objective on shares of 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 dropped their price objective on Redwood Trust from $6.00 to $5.50 and set an “outperform” rating for the company in a research note on Wednesday, July 29th. Wells Fargo & Company cut their target price on shares of Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 29th. Finally, Zacks Research lowered Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 21st.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. UBS Group AG boosted its holdings in shares of Redwood Trust by 521.1% in the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock valued at $21,430,000 after purchasing an additional 3,251,302 shares in the last quarter. Wellington Management Group LLP raised its holdings in Redwood Trust by 10.2% in the 3rd quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock valued at $86,969,000 after buying an additional 1,395,675 shares during the last quarter. Evergreen Capital Management LLC raised its stake in shares of Redwood Trust by 52.8% during the fourth quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust’s stock valued at $9,257,000 after acquiring an additional 578,301 shares during the last quarter. Invesco Ltd. grew its position in shares of Redwood Trust by 25.4% in the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock valued at $14,107,000 after buying an additional 516,630 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in Redwood Trust in the first quarter valued at approximately $2,018,000. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Price Performance

Shares of NYSE:RWT opened at $4.73 on Thursday. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 59.63. The stock has a market cap of $594.65 million, a price-to-earnings ratio of -118.32 and a beta of 1.38. The stock’s 50 day moving average price is $4.94 and its 200 day moving average price is $5.46. Redwood Trust has a 12 month low of $4.19 and a 12 month high of $6.97.

Redwood Trust (NYSE:RWT) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The company had revenue of $56.01 million during the quarter, compared to analysts’ expectations of $89.45 million. Equities research analysts anticipate that Redwood Trust will post 1.03 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 15.2%. The ex-dividend date of this dividend was Tuesday, June 23rd. Redwood Trust’s payout ratio is currently -1,800.00%.

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.