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

Shares of Redwood Trust, Inc. (NYSE:RWT) have been assigned an average recommendation of “Moderate Buy” from the eight research firms that are currently covering the stock, Marketbeat Ratings reports. Four analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given 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 analysts have issued reports on RWT shares. JPMorgan Chase & Co. cut their price target on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. StockNews.com cut Redwood Trust from a “hold” rating to a “sell” rating in a report on Monday, February 17th. Finally, JMP Securities restated a “market outperform” rating and set a $8.00 price target on shares of Redwood Trust in a research note on Friday, February 14th.

Institutional Investors Weigh In On Redwood Trust

A number of institutional investors and hedge funds have recently bought and sold shares of RWT. Invesco Ltd. boosted its holdings in Redwood Trust by 150.9% during the 4th quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust’s stock worth $13,031,000 after acquiring an additional 1,200,050 shares during the last quarter. Wellington Management Group LLP boosted its holdings in Redwood Trust by 6.9% during the third quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock worth $112,945,000 after purchasing an additional 941,223 shares during the last quarter. Balyasny Asset Management L.P. grew its position in Redwood Trust by 19.2% in the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust’s stock worth $13,023,000 after purchasing an additional 321,612 shares in the last quarter. NFC Investments LLC grew its position in Redwood Trust by 127.7% in the 3rd quarter. NFC Investments LLC now owns 484,975 shares of the real estate investment trust’s stock worth $3,749,000 after purchasing an additional 271,975 shares in the last quarter. Finally, Angel Oak Capital Advisors LLC purchased a new stake in Redwood Trust in the 4th quarter valued at about $1,726,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Stock Up 1.8 %

Redwood Trust stock opened at $6.69 on Wednesday. The company has a market capitalization of $886.56 million, a PE ratio of 20.27 and a beta of 1.57. Redwood Trust has a 12-month low of $5.45 and a 12-month high of $8.15. The firm’s fifty day moving average is $6.48 and its 200 day moving average is $7.05. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.09.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.03). The company had revenue of $27.60 million for the quarter, compared to analyst estimates of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. As a group, sell-side analysts predict that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Monday, December 23rd were issued a dividend of $0.18 per share. The ex-dividend date was Monday, December 23rd. This represents a $0.72 annualized dividend and a yield of 10.76%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s dividend payout ratio is 218.18%.

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.