Redwood Trust, Inc. (NYSE:RWT) Receives $8.19 Average Target Price from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT) have received a consensus rating of “Moderate Buy” from the nine ratings firms that are covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $8.19.

A number of analysts have recently weighed in on RWT shares. Piper Sandler raised their price target on shares of Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research report on Monday, August 5th. Wedbush raised their price target on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a “neutral” rating in a research report on Friday, August 2nd. Wells Fargo & Company lifted their price objective on shares of Redwood Trust from $7.50 to $8.50 and gave the stock an “equal weight” rating in a report on Friday, September 20th. Raymond James lifted their price objective on shares of Redwood Trust from $8.50 to $9.50 and gave the stock a “strong-buy” rating in a report on Thursday, September 19th. Finally, StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in Redwood Trust by 19.5% during the first quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after purchasing an additional 2,530,937 shares during the period. Wellington Management Group LLP raised its stake in shares of Redwood Trust by 6.9% in the third quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock valued at $112,945,000 after purchasing an additional 941,223 shares in the last quarter. Ceredex Value Advisors LLC raised its stake in Redwood Trust by 48.8% during the second quarter. Ceredex Value Advisors LLC now owns 906,512 shares of the real estate investment trust’s stock worth $5,883,000 after acquiring an additional 297,100 shares in the last quarter. NFC Investments LLC raised its stake in Redwood Trust by 127.7% during the third quarter. NFC Investments LLC now owns 484,975 shares of the real estate investment trust’s stock worth $3,749,000 after acquiring an additional 271,975 shares in the last quarter. Finally, Van ECK Associates Corp raised its stake in Redwood Trust by 21.7% during the second quarter. Van ECK Associates Corp now owns 976,283 shares of the real estate investment trust’s stock worth $6,336,000 after acquiring an additional 174,317 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Price Performance

NYSE:RWT opened at $7.02 on Monday. The firm has a market cap of $928.54 million, a price-to-earnings ratio of 12.94 and a beta of 1.59. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.55. The company’s 50-day moving average is $7.52 and its two-hundred day moving average is $7.07. Redwood Trust has a 12-month low of $5.45 and a 12-month high of $8.15.

Redwood Trust Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Monday, September 23rd were 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 was Monday, September 23rd. This represents a $0.68 annualized dividend and a dividend yield of 9.69%. Redwood Trust’s payout ratio is presently 123.64%.

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.