According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “
Other equities analysts have also issued research reports about the company. Nomura initiated coverage on Redwood Trust in a research report on Wednesday, March 27th. They set a buy rating and a $17.50 price objective for the company. JMP Securities raised Redwood Trust from a market perform rating to an outperform rating and set a $17.00 price objective for the company in a research report on Monday, March 4th. Finally, Credit Suisse Group initiated coverage on Redwood Trust in a research report on Tuesday, February 5th. They set an outperform rating and a $18.00 price objective for the company. One analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $17.83.
Shares of Redwood Trust stock opened at $16.10 on Thursday. The company has a quick ratio of 4.25, a current ratio of 4.25 and a debt-to-equity ratio of 5.30. The firm has a market cap of $1.56 billion, a price-to-earnings ratio of 9.04 and a beta of 0.65. Redwood Trust has a 12 month low of $14.29 and a 12 month high of $17.50.
Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Wednesday, May 8th. The real estate investment trust reported $0.36 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.02). The firm had revenue of $32.00 million for the quarter, compared to analysts’ expectations of $44.20 million. Redwood Trust had a net margin of 24.71% and a return on equity of 10.86%. The business’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.60 EPS. Sell-side analysts anticipate that Redwood Trust will post 1.48 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 7.45%. The ex-dividend date of this dividend is Thursday, June 13th. Redwood Trust’s dividend payout ratio is presently 67.42%.
In other news, Director Mariann H. Byerwalter sold 9,778 shares of Redwood Trust stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $15.81, for a total value of $154,590.18. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.50% of the stock is owned by insiders.
Institutional investors and hedge funds have recently bought and sold shares of the company. Northern Trust Corp raised its position in shares of Redwood Trust by 2.1% in the 4th quarter. Northern Trust Corp now owns 1,077,432 shares of the real estate investment trust’s stock worth $16,237,000 after purchasing an additional 22,069 shares during the last quarter. Municipal Employees Retirement System of Michigan purchased a new position in Redwood Trust in the 4th quarter worth about $444,000. State Board of Administration of Florida Retirement System raised its position in Redwood Trust by 8.6% in the 4th quarter. State Board of Administration of Florida Retirement System now owns 82,266 shares of the real estate investment trust’s stock worth $1,240,000 after buying an additional 6,525 shares during the last quarter. Victory Capital Management Inc. raised its position in Redwood Trust by 4.2% in the 4th quarter. Victory Capital Management Inc. now owns 835,790 shares of the real estate investment trust’s stock worth $12,595,000 after buying an additional 33,510 shares during the last quarter. Finally, Vanguard Group Inc. grew its stake in shares of Redwood Trust by 19.7% during the 3rd quarter. Vanguard Group Inc. now owns 7,796,662 shares of the real estate investment trust’s stock valued at $126,618,000 after purchasing an additional 1,284,601 shares during the period. 86.97% 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 two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.
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