Verition Fund Management LLC Makes New Investment in Redwood Trust, Inc. (NYSE:RWT)

Verition Fund Management LLC bought a new stake in Redwood Trust, Inc. (NYSE:RWT) in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 13,072 shares of the real estate investment trust’s stock, valued at approximately $101,000.

Several other large investors have also recently added to or reduced their stakes in the business. SG Americas Securities LLC purchased a new position in Redwood Trust in the 2nd quarter valued at about $242,000. Clear Harbor Asset Management LLC acquired a new stake in Redwood Trust during the 3rd quarter valued at approximately $722,000. Van ECK Associates Corp grew its stake in Redwood Trust by 21.7% during the 2nd quarter. Van ECK Associates Corp now owns 976,283 shares of the real estate investment trust’s stock valued at $6,336,000 after purchasing an additional 174,317 shares in the last quarter. Wulff Hansen & CO. increased its holdings in Redwood Trust by 549.0% during the 2nd quarter. Wulff Hansen & CO. now owns 128,463 shares of the real estate investment trust’s stock worth $834,000 after purchasing an additional 108,669 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Redwood Trust by 37.2% in the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 291,563 shares of the real estate investment trust’s stock valued at $2,254,000 after purchasing an additional 79,094 shares in the last quarter. 74.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on RWT. Raymond James increased their target price 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. StockNews.com upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research note on Monday, November 11th. Wells Fargo & Company lifted their target price on Redwood Trust from $7.50 to $8.50 and gave the company an “equal weight” rating in a research note on Friday, September 20th. JMP Securities increased their price target on Redwood Trust from $8.50 to $9.00 and gave the stock a “market outperform” rating in a research report on Friday, October 4th. Finally, JPMorgan Chase & Co. restated a “neutral” rating and set a $7.00 price objective (down previously from $8.00) on shares of Redwood Trust in a research report on Monday, December 9th. Five analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Redwood Trust has a consensus rating of “Moderate Buy” and a consensus target price of $8.03.

Redwood Trust Price Performance

Shares of RWT stock opened at $7.10 on Tuesday. Redwood Trust, Inc. has a 1 year low of $5.45 and a 1 year high of $8.15. 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 firm’s 50 day moving average is $7.28 and its 200-day moving average is $7.16. The firm has a market capitalization of $938.46 million, a price-to-earnings ratio of 12.90 and a beta of 1.57.

Redwood Trust Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Monday, December 23rd will be given a dividend of $0.18 per share. This is a boost from Redwood Trust’s previous quarterly dividend of $0.17. The ex-dividend date is Monday, December 23rd. This represents a $0.72 annualized dividend and a dividend yield of 10.15%. Redwood Trust’s payout ratio is currently 123.64%.

About Redwood Trust

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.