Zacks Investment Research downgraded shares of Redwood Trust (NYSE:RWT) from a hold rating to a sell rating in a research report released on Saturday morning.
According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “
Several other equities analysts have also recently issued reports on RWT. ValuEngine raised Redwood Trust from a hold rating to a buy rating in a research note on Friday, December 1st. Keefe, Bruyette & Woods raised Redwood Trust from a market perform rating to an outperform rating in a research note on Thursday, December 7th. Finally, Deutsche Bank reduced their target price on Redwood Trust from $18.50 to $17.00 and set a buy rating on the stock in a research note on Wednesday, November 8th. One analyst has rated the stock with a sell rating and four have given a buy rating to the company. The company currently has an average rating of Buy and a consensus price target of $17.00.
Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Thursday, February 22nd. The real estate investment trust reported $0.35 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.35. Redwood Trust had a return on equity of 10.05% and a net margin of 41.42%. The firm had revenue of $35.00 million during the quarter, compared to the consensus estimate of $37.55 million. During the same quarter in the previous year, the company posted $0.33 earnings per share. The business’s revenue was down 2.8% on a year-over-year basis. equities research analysts forecast that Redwood Trust will post 1.44 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 29th. Stockholders of record on Thursday, March 15th will be paid a dividend of $0.28 per share. The ex-dividend date of this dividend is Wednesday, March 14th. This represents a $1.12 annualized dividend and a dividend yield of 7.26%. Redwood Trust’s dividend payout ratio (DPR) is presently 69.14%.
In other news, General Counsel Andrew P. Stone sold 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 20th. The stock was sold at an average price of $14.87, for a total transaction of $74,350.00. Following the transaction, the general counsel now directly owns 53,015 shares of the company’s stock, valued at $788,333.05. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 2.33% of the stock is currently owned by insiders.
A number of hedge funds have recently modified their holdings of the stock. Xact Kapitalforvaltning AB purchased a new stake in Redwood Trust in the fourth quarter worth $280,000. MetLife Investment Advisors LLC purchased a new stake in Redwood Trust in the fourth quarter worth $497,000. Millennium Management LLC grew its stake in Redwood Trust by 16.0% in the fourth quarter. Millennium Management LLC now owns 857,374 shares of the real estate investment trust’s stock worth $12,706,000 after purchasing an additional 118,048 shares during the period. HBK Investments L P purchased a new stake in Redwood Trust in the fourth quarter worth $409,000. Finally, Two Sigma Investments LP grew its stake in Redwood Trust by 65.0% in the fourth quarter. Two Sigma Investments LP now owns 344,693 shares of the real estate investment trust’s stock worth $5,108,000 after purchasing an additional 135,728 shares during the period. 82.57% of the stock is currently owned by institutional investors.
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About Redwood Trust
Redwood Trust, Inc, through its subsidiaries, focuses on investing in mortgage and other real estate related assets. The Company is engaged in mortgage banking activities. The Company operates through three segments: Residential Investments, Residential Mortgage Banking and Commercial. The Residential Investments segment includes a portfolio of investments in residential mortgage-backed securities (RMBS) retained from its Sequoia securitizations.
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