Brokerages Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $6.75

Redwood Trust, Inc. (NYSE:RWT) has been given a consensus rating of “Hold” by the seven brokerages that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have given a buy recommendation to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $6.75.

A number of equities analysts recently issued reports on the company. Jones Trading reduced their target price on Redwood Trust from $7.00 to $6.25 and set a “buy” rating for the company in a research note on Thursday, October 30th. UBS Group increased their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a “buy” rating in a report on Wednesday, September 3rd. Wall Street Zen raised Redwood Trust from a “sell” rating to a “hold” rating in a report on Saturday. BTIG Research reiterated a “buy” rating and issued a $8.50 target price on shares of Redwood Trust in a research report on Friday, September 26th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, October 8th.

Redwood Trust Stock Down 0.3%

RWT stock opened at $5.54 on Tuesday. The stock has a market capitalization of $701.18 million, a PE ratio of -6.83 and a beta of 1.59. Redwood Trust has a 52 week low of $4.68 and a 52 week high of $6.73. The company has a quick ratio of 57.77, a current ratio of 57.77 and a debt-to-equity ratio of 22.73. The firm has a 50 day moving average of $5.44 and a 200 day moving average of $5.74.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings results on Wednesday, October 29th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.04. Redwood Trust had a negative net margin of 8.62% and a positive return on equity of 9.19%. The business had revenue of $54.37 million during the quarter, compared to analysts’ expectations of $31.04 million. Sell-side analysts forecast that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Investors of record on Tuesday, December 23rd will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 13.0%. The ex-dividend date of this dividend is Tuesday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is -88.89%.

Institutional Investors Weigh In On Redwood Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CWM LLC raised its stake in shares of Redwood Trust by 270.5% during the 2nd quarter. CWM LLC now owns 6,168 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 4,503 shares during the last quarter. Quantbot Technologies LP acquired a new stake in Redwood Trust during the first quarter worth about $37,000. Russell Investments Group Ltd. raised its position in Redwood Trust by 331.8% during the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 6,082 shares in the last quarter. AlphaQuest LLC raised its position in Redwood Trust by 165.5% during the first quarter. AlphaQuest LLC now owns 8,589 shares of the real estate investment trust’s stock valued at $52,000 after acquiring an additional 5,354 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in Redwood Trust by 136.9% in the second quarter. Tower Research Capital LLC TRC now owns 10,823 shares of the real estate investment trust’s stock valued at $64,000 after acquiring an additional 6,255 shares during the period. 74.34% of the stock is owned by institutional investors and hedge funds.

About Redwood Trust

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.