Redwood Trust (NYSE:RWT) Raised to “Hold” at StockNews.com

Redwood Trust (NYSE:RWT) was upgraded by StockNews.com from a “sell” rating to a “hold” rating in a research report issued on Wednesday.

A number of other research analysts also recently commented on the stock. JMP Securities reaffirmed a “market outperform” rating and issued a $8.00 target price on shares of Redwood Trust in a research report 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 on the stock in a report on Tuesday, January 21st. Five analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $7.75.

Redwood Trust Stock Performance

NYSE:RWT opened at $6.48 on Wednesday. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.15. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36. The firm has a market capitalization of $858.07 million, a PE ratio of 19.62 and a beta of 1.63. The business’s fifty day moving average price is $6.47 and its 200 day moving average price is $7.04.

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

Institutional Trading of Redwood Trust

Several institutional investors and hedge funds have recently added to or reduced their stakes in RWT. Brown Brothers Harriman & Co. acquired a new position in shares of Redwood Trust in the third quarter valued at approximately $39,000. Sovran Advisors LLC acquired a new position in Redwood Trust in the 4th quarter valued at $63,000. 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 buying an additional 4,788 shares during the period. Zacks Investment Management acquired a new stake in shares of Redwood Trust in the 4th quarter worth $74,000. Finally, Creative Planning purchased a new stake in shares of Redwood Trust in the third quarter valued at about $91,000. 74.34% of the stock is owned by hedge funds and other institutional investors.

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.