Redwood Trust (NYSE:RWT) Price Target Raised to $8.50 at Wells Fargo & Company

Redwood Trust (NYSE:RWT) had its target price boosted by Wells Fargo & Company from $7.50 to $8.50 in a report published on Friday morning, Benzinga reports. They currently have an equal weight rating on the real estate investment trust’s stock.

A number of other equities analysts also recently weighed in on RWT. JPMorgan Chase & Co. boosted their price target on Redwood Trust from $7.00 to $7.50 and gave the stock an overweight rating in a research report on Tuesday, July 16th. Raymond James increased their price target on Redwood Trust from $8.50 to $9.50 and gave the company a strong-buy rating in a research note on Thursday. JMP Securities lifted their price objective on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a market outperform rating in a research report on Friday, July 19th. Piper Sandler upped their price objective on shares of Redwood Trust from $6.50 to $7.50 and gave the company a neutral rating in a report on Monday, August 5th. Finally, Wedbush raised their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a neutral rating in a research note on Friday, August 2nd. Four research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of Moderate Buy and a consensus price target of $8.08.

Redwood Trust Price Performance

NYSE:RWT opened at $7.93 on Friday. The stock has a market capitalization of $1.05 billion, a PE ratio of 113.29 and a beta of 1.58. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15. The firm has a fifty day simple moving average of $7.37 and a 200 day simple moving average of $6.64. The company has a current ratio of 50.47, a quick ratio of 50.47 and a debt-to-equity ratio of 12.97.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a net margin of 4.45% and a return on equity of 4.93%. During the same period in the previous year, the company earned $0.14 earnings per share. On average, research analysts expect that Redwood Trust will post 0.5 EPS for the current fiscal year.

Redwood Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Shareholders of record on Monday, September 23rd will be paid a $0.17 dividend. This is a boost from Redwood Trust’s previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Monday, September 23rd. This represents a $0.68 annualized dividend and a yield of 8.58%. Redwood Trust’s payout ratio is 914.29%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RWT. Charles Schwab Investment Management Inc. raised its position in shares of Redwood Trust by 7.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,798,260 shares of the real estate investment trust’s stock valued at $13,325,000 after buying an additional 127,435 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in Redwood Trust by 13.0% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,103,231 shares of the real estate investment trust’s stock valued at $7,182,000 after acquiring an additional 127,143 shares in the last quarter. Wellington Management Group LLP lifted its position in shares of Redwood Trust by 164.4% during the 4th quarter. Wellington Management Group LLP now owns 11,314,715 shares of the real estate investment trust’s stock valued at $83,842,000 after acquiring an additional 7,035,524 shares during the period. SG Americas Securities LLC bought a new stake in shares of Redwood Trust during the 2nd quarter valued at $242,000. Finally, Illinois Municipal Retirement Fund grew its holdings in shares of Redwood Trust by 4.5% during the 1st quarter. Illinois Municipal Retirement Fund now owns 69,768 shares of the real estate investment trust’s stock worth $444,000 after purchasing an additional 2,993 shares in the last quarter. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.