Redwood Trust Inc. (RWT) Rating Lowered to Hold at Zacks Investment Research
Redwood Trust Inc. (NYSE:RWT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
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. “
A number of other equities analysts have also recently commented on the company. Keefe, Bruyette & Woods cut Redwood Trust from an “outperform” rating to a “market perform” rating and set a $14.50 target price for the company. in a report on Tuesday, July 19th. Maxim Group cut Redwood Trust from a “buy” rating to a “hold” rating in a report on Wednesday, August 10th. Five investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $15.55.
Redwood Trust (NYSE:RWT) opened at 13.97 on Tuesday. Redwood Trust has a 12-month low of $9.26 and a 12-month high of $15.24. The firm has a market cap of $1.07 billion, a P/E ratio of 10.18 and a beta of 0.71. The stock’s 50 day moving average is $14.03 and its 200 day moving average is $13.79.
Redwood Trust (NYSE:RWT) last announced its earnings results on Monday, August 8th. The company reported $0.47 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.10. Redwood Trust had a return on equity of 12.09% and a net margin of 41.54%. During the same quarter in the previous year, the business posted $0.31 earnings per share. On average, equities research analysts expect that Redwood Trust will post $1.35 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 8.02%. The ex-dividend date was Tuesday, September 13th. Redwood Trust’s payout ratio is presently 85.50%.
Large investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio raised its stake in shares of Redwood Trust by 6.7% in the second quarter. Public Employees Retirement System of Ohio now owns 7,329 shares of the company’s stock valued at $101,000 after buying an additional 461 shares during the period. Emerald Acquisition Ltd. acquired a new stake in shares of Redwood Trust during the second quarter valued at $115,000. Cubist Systematic Strategies LLC acquired a new stake in shares of Redwood Trust during the second quarter valued at $141,000. Teacher Retirement System of Texas raised its stake in shares of Redwood Trust by 7.1% in the second quarter. Teacher Retirement System of Texas now owns 10,846 shares of the company’s stock valued at $150,000 after buying an additional 716 shares during the period. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in shares of Redwood Trust during the second quarter valued at $151,000. 86.85% of the stock is currently owned by institutional investors and hedge funds.
Redwood Trust Company Profile
Redwood Trust, Inc, together with its subsidiaries, focuses on investing in mortgage- and other real estate-related assets. The Company operates through three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Its residential mortgage banking segment consists of operating a mortgage loan conduit that acquires residential whole loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio.
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