Redwood Trust (NYSE:RWT) Hits New 1-Year High After Dividend Announcement

Redwood Trust, Inc. (NYSE:RWT) hit a new 52-week high during trading on Tuesday following a dividend announcement from the company. The company traded as high as $12.73 and last traded at $12.58, with a volume of 13747 shares trading hands. The stock had previously closed at $12.52.

The newly announced dividend which will be paid on Thursday, September 30th. Investors of record on Thursday, September 23rd will be issued a $0.21 dividend. This is an increase from Redwood Trust’s previous quarterly dividend of $0.18. This represents a $0.84 dividend on an annualized basis and a dividend yield of 6.66%. Redwood Trust’s payout ratio is presently 1,800.00%.

Several research analysts have recently weighed in on RWT shares. Credit Suisse Group lifted their target price on shares of Redwood Trust from $13.00 to $14.00 and gave the stock an “outperform” rating in a research report on Monday. Raymond James boosted their price objective on shares of Redwood Trust from $14.50 to $16.00 and gave the company a “strong-buy” rating in a research report on Thursday, July 29th. JMP Securities boosted their price objective on shares of Redwood Trust from $12.00 to $13.50 and gave the company a “market outperform” rating in a research report on Thursday, June 24th. Zacks Investment Research raised shares of Redwood Trust from a “hold” rating to a “buy” rating and set a $14.00 price objective on the stock in a research report on Wednesday, July 14th. Finally, Piper Sandler raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $12.00 to $14.00 in a research report on Monday, July 19th. Seven research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $13.31.

The company has a quick ratio of 6.63, a current ratio of 6.63 and a debt-to-equity ratio of 6.97. The company has a market capitalization of $1.43 billion, a P/E ratio of 4.47 and a beta of 0.97. The company’s 50-day simple moving average is $12.14 and its 200 day simple moving average is $11.38.

Several institutional investors have recently modified their holdings of the company. BlackRock Inc. lifted its stake in shares of Redwood Trust by 5.6% in the first quarter. BlackRock Inc. now owns 20,917,191 shares of the real estate investment trust’s stock worth $217,747,000 after buying an additional 1,113,684 shares during the last quarter. Vanguard Group Inc. raised its stake in Redwood Trust by 0.5% during the 2nd quarter. Vanguard Group Inc. now owns 11,869,947 shares of the real estate investment trust’s stock valued at $143,270,000 after purchasing an additional 63,448 shares during the last quarter. State Street Corp raised its stake in Redwood Trust by 4.3% during the 2nd quarter. State Street Corp now owns 3,926,249 shares of the real estate investment trust’s stock valued at $47,390,000 after purchasing an additional 160,488 shares during the last quarter. Amundi Asset Management US Inc. raised its stake in Redwood Trust by 13.4% during the 1st quarter. Amundi Asset Management US Inc. now owns 2,588,749 shares of the real estate investment trust’s stock valued at $26,950,000 after purchasing an additional 305,805 shares during the last quarter. Finally, Amundi acquired a new position in Redwood Trust during the 2nd quarter valued at $27,366,000. Institutional investors and hedge funds own 70.61% of the company’s stock.

About Redwood Trust (NYSE:RWT)

Redwood Trust, Inc is a financial company, which focuses on several distinct areas of housing credit. It operates through the segments: Residential Lending, Business Purpose Lending, Third-Party Investments, and Corporate. The Residential Lending segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer into the investment portfolio.

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