Brokerages Set Redwood Trust, Inc. (NYSE:RWT) PT at $7.84

Shares of Redwood Trust, Inc. (NYSE:RWT) have been given an average rating of “Moderate Buy” by the eight brokerages that are currently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $7.84.

Several research firms have commented on RWT. JPMorgan Chase & Co. lowered their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research note on Tuesday, January 21st. JMP Securities lowered their price objective on shares of Redwood Trust from $9.00 to $8.00 and set a “market outperform” rating for the company in a research note on Thursday, January 23rd. Finally, StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th.

Hedge Funds Weigh In On Redwood Trust

Several hedge funds have recently modified their holdings of the company. Brown Brothers Harriman & Co. acquired a new position in shares of Redwood Trust in the 3rd quarter valued at about $39,000. GAMMA Investing LLC grew its holdings in Redwood Trust by 65.4% during the third quarter. GAMMA Investing LLC now owns 5,169 shares of the real estate investment trust’s stock valued at $40,000 after purchasing an additional 2,043 shares during the last quarter. Sovran Advisors LLC acquired a new stake in shares of Redwood Trust in the fourth quarter valued at about $63,000. KBC Group NV grew its holdings in Redwood Trust by 86.7% in the 4th quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock valued at $67,000 after buying an additional 4,788 shares during the last quarter. Finally, Algert Global LLC acquired a new stake in shares of Redwood Trust in the second quarter worth $86,000. 74.34% of the stock is currently owned by institutional investors and hedge funds.

Redwood Trust Stock Performance

NYSE:RWT opened at $6.50 on Friday. The stock has a market cap of $860.72 million, a PE ratio of 11.81 and a beta of 1.57. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.55. The firm’s fifty day simple moving average is $6.68 and its 200-day simple moving average is $7.15. Redwood Trust has a fifty-two week low of $5.45 and a fifty-two week high of $8.15.

Redwood Trust Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Monday, December 23rd were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Monday, December 23rd. This represents a $0.72 annualized dividend and a yield of 11.09%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s payout ratio is presently 130.91%.

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.