Redwood Trust (NYSE:RWT) Stock Rating Lowered by Zacks Research

Redwood Trust (NYSE:RWT) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday, Zacks reports.

Other equities research analysts have also recently issued research reports about the company. Citigroup reissued a “market outperform” rating on shares of Redwood Trust in a research note on Thursday. JonesTrading cut their price objective on Redwood Trust from $6.25 to $6.00 and set a “buy” rating on the stock in a research note on Tuesday, July 28th. Citizens Jmp cut their price objective on Redwood Trust from $6.00 to $4.00 and set a “market outperform” rating on the stock in a research note on Thursday. Piper Sandler reduced their target price on Redwood Trust from $5.25 to $3.75 and set a “neutral” rating on the stock in a report on Friday, October 9th. Finally, UBS Group decreased their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research report on Friday, August 21st. Seven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $5.25.

Redwood Trust Stock Performance

NYSE RWT opened at $3.10 on Wednesday. The company has a market capitalization of $388.76 million, a price-to-earnings ratio of 2.78 and a beta of 1.45. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69. Redwood Trust has a twelve month low of $2.91 and a twelve month high of $6.97. The stock has a fifty day simple moving average of $4.10 and a 200 day simple moving average of $4.84.

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. The firm had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%. Sell-side analysts expect that Redwood Trust will post 1.01 EPS for the current year.

Insider Activity

In other Redwood Trust news, CEO Christopher J. Abate purchased 100,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was purchased at an average cost of $3.84 per share, for a total transaction of $384,000.00. Following the acquisition, the chief executive officer owned 679,283 shares in the company, valued at approximately $2,608,446.72. The trade was a 17.26% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Dashiell I. Robinson acquired 63,211 shares of the stock in a transaction dated Wednesday, September 16th. The stock was acquired at an average cost of $3.98 per share, with a total value of $251,579.78. Following the completion of the transaction, the president owned 395,050 shares in the company, valued at approximately $1,572,299. This represents a 19.05% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 244,171 shares of company stock worth $948,402 in the last three months. Corporate insiders own 3.30% of the company’s stock.

Institutional Investors Weigh In On Redwood Trust

Institutional investors and hedge funds have recently made changes to their positions in the business. Optiver Holding B.V. grew its stake in Redwood Trust by 2,034.5% during the first quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust’s stock worth $60,000 after purchasing an additional 10,274 shares during the period. Quotient Wealth Partners LLC acquired a new position in Redwood Trust in the first quarter valued at approximately $76,000. Evanson Financial LLC bought a new position in shares of Redwood Trust during the 2nd quarter worth approximately $66,000. Janney Montgomery Scott LLC grew its position in shares of Redwood Trust by 18.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 15,113 shares of the real estate investment trust’s stock worth $85,000 after buying an additional 2,363 shares during the period. Finally, Range Financial Group LLC acquired a new stake in shares of Redwood Trust during the 1st quarter worth approximately $86,000. Institutional investors own 74.34% of the company’s stock.

About Redwood Trust

Redwood Trust, Inc (NYSE: RWT) is a specialty finance company focused on housing credit and residential real estate finance. Organized as a real estate investment trust, the company invests in and manages residential credit assets, including mortgage loans and mortgage-related securities, with an emphasis on assets that are not typically financed through traditional government-sponsored mortgage programs.

Redwood operates through several business platforms. Its residential mortgage banking activities include acquiring and financing prime jumbo loans and other residential mortgages, which may be held for investment or placed into private-label securitizations.