CIBC Asset Management Inc Takes Position in Redwood Trust, Inc. (NYSE:RWT)

CIBC Asset Management Inc purchased a new stake in Redwood Trust, Inc. (NYSE:RWT) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 13,216 shares of the real estate investment trust’s stock, valued at approximately $86,000.

Several other hedge funds have also modified their holdings of the business. BNP Paribas Financial Markets lifted its holdings in shares of Redwood Trust by 7.2% in the 3rd quarter. BNP Paribas Financial Markets now owns 28,909 shares of the real estate investment trust’s stock valued at $223,000 after buying an additional 1,932 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Redwood Trust by 4.6% in the 3rd quarter. Franklin Resources Inc. now owns 72,486 shares of the real estate investment trust’s stock valued at $548,000 after buying an additional 3,206 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Redwood Trust by 18.0% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 29,725 shares of the real estate investment trust’s stock valued at $230,000 after buying an additional 4,527 shares during the period. KBC Group NV increased its stake 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 purchasing an additional 4,788 shares in the last quarter. Finally, Brown Brothers Harriman & Co. purchased a new position in Redwood Trust in the 3rd quarter valued at approximately $39,000. 74.34% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on RWT shares. JMP Securities reaffirmed a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a research note on Friday, February 14th. JPMorgan Chase & Co. dropped their price objective on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research note on Tuesday, January 21st. Finally, StockNews.com downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research note on Monday, February 17th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Redwood Trust currently has a consensus rating of “Hold” and an average price target of $7.84.

Redwood Trust Stock Performance

Redwood Trust stock opened at $6.64 on Thursday. The company has a debt-to-equity ratio of 14.09, a quick ratio of 44.36 and a current ratio of 44.36. The stock has a fifty day moving average of $6.48 and a two-hundred day moving average of $7.06. The company has a market capitalization of $879.93 million, a price-to-earnings ratio of 20.12 and a beta of 1.57. Redwood Trust, Inc. has a fifty-two week low of $5.45 and a fifty-two week high of $8.15.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results 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 analysts’ expectations of $26.00 million. Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. On average, analysts anticipate that Redwood Trust, Inc. will post 0.78 EPS for the current fiscal year.

Redwood Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were given a $0.18 dividend. The ex-dividend date was Monday, December 23rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 10.84%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s payout ratio is currently 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.