Redwood Trust, Inc. (NYSE:RWT) Receives Consensus Rating of “Moderate Buy” from Analysts

Redwood Trust, Inc. (NYSE:RWT) has been given a consensus rating of “Moderate Buy” by the nine analysts that are currently covering the stock, MarketBeat reports. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $8.19.

RWT has been the topic of a number of research analyst reports. JMP Securities boosted their price objective on shares of Redwood Trust from $8.50 to $9.00 and gave the company a “market outperform” rating in a report on Friday, October 4th. Piper Sandler increased their price objective on Redwood Trust from $6.50 to $7.50 and gave the company a “neutral” rating in a report on Monday, August 5th. JPMorgan Chase & Co. raised their price objective on Redwood Trust from $7.50 to $8.00 and gave the stock an “overweight” rating in a research note on Thursday, October 17th. Wells Fargo & Company upped their target price on Redwood Trust from $7.50 to $8.50 and gave the company an “equal weight” rating in a research report on Friday, September 20th. Finally, 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.

Institutional Investors Weigh In On Redwood Trust

Several hedge funds have recently modified their holdings of RWT. Vanguard Group Inc. increased its holdings in Redwood Trust by 19.5% in the 1st quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after acquiring an additional 2,530,937 shares in the last quarter. Clearbridge Investments LLC raised its position in shares of Redwood Trust by 2.1% during the 1st quarter. Clearbridge Investments LLC now owns 1,846,227 shares of the real estate investment trust’s stock worth $11,760,000 after purchasing an additional 37,514 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake 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 buying an additional 127,143 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Redwood Trust by 21.7% in the 2nd quarter. Van ECK Associates Corp now owns 976,283 shares of the real estate investment trust’s stock worth $6,336,000 after buying an additional 174,317 shares during the last quarter. Finally, Ceredex Value Advisors LLC increased its stake in Redwood Trust by 48.8% during the 2nd quarter. Ceredex Value Advisors LLC now owns 906,512 shares of the real estate investment trust’s stock worth $5,883,000 after buying an additional 297,100 shares in the last quarter. 74.34% of the stock is owned by hedge funds and other institutional investors.

Redwood Trust Trading Up 0.4 %

Redwood Trust stock opened at $7.47 on Thursday. The company has a debt-to-equity ratio of 12.97, a quick ratio of 50.47 and a current ratio of 50.47. The stock has a market cap of $987.68 million, a PE ratio of 43.94 and a beta of 1.58. The stock has a 50-day moving average of $7.55 and a two-hundred day moving average of $6.87. Redwood Trust has a one year low of $5.45 and a one year high of $8.15.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, beating the consensus estimate 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 last year, the company posted $0.14 earnings per share. On average, research analysts anticipate that Redwood Trust will post 0.52 EPS for the current fiscal year.

Redwood Trust Increases Dividend

The company also recently announced 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. This represents a $0.68 annualized dividend and a dividend yield of 9.10%. The ex-dividend date of this dividend was Monday, September 23rd. Redwood Trust’s payout ratio is currently 400.00%.

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.