Redwood Trust, Inc. (NYSE:RWT) Sees Large Growth in Short Interest

Redwood Trust, Inc. (NYSE:RWT) was the recipient of a significant growth in short interest in March. As of March 13th, there was short interest totaling 6,977,416 shares, a growth of 27.1% from the February 26th total of 5,489,368 shares. Based on an average daily volume of 1,588,782 shares, the days-to-cover ratio is currently 4.4 days. Approximately 5.7% of the shares of the stock are sold short.

Redwood Trust Price Performance

Shares of NYSE:RWT traded up $0.24 during mid-day trading on Tuesday, reaching $5.62. The stock had a trading volume of 1,750,419 shares, compared to its average volume of 1,800,409. The business’s 50 day moving average price is $5.85 and its 200 day moving average price is $5.67. Redwood Trust has a 1 year low of $4.68 and a 1 year high of $6.97. The company has a market cap of $701.82 million, a P/E ratio of -9.20 and a beta of 1.55. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 24.34.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. The firm had revenue of $140.33 million for the quarter, compared to analysts’ expectations of $24.88 million. Research analysts expect that Redwood Trust will post 0.78 EPS for the current fiscal year.

Redwood Trust Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 24th will be issued a $0.18 dividend. The ex-dividend date of this dividend is Tuesday, March 24th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 12.8%. Redwood Trust’s dividend payout ratio (DPR) is -118.03%.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently bought and sold shares of the business. Clearstead Advisors LLC boosted its stake in shares of Redwood Trust by 192.5% during the 4th quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock worth $30,000 after purchasing an additional 3,572 shares during the period. Russell Investments Group Ltd. grew its holdings in Redwood Trust by 331.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock valued at $47,000 after purchasing an additional 6,082 shares during the last quarter. CWM LLC raised its position in Redwood Trust by 54.2% in the 3rd quarter. CWM LLC now owns 9,514 shares of the real estate investment trust’s stock worth $55,000 after purchasing an additional 3,346 shares during the period. Westbourne Investments Inc. purchased a new stake in Redwood Trust in the 4th quarter worth about $55,000. Finally, Bank of Marin bought a new stake in Redwood Trust in the fourth quarter worth about $58,000. Institutional investors own 74.34% of the company’s stock.

Analyst Upgrades and Downgrades

RWT has been the topic of a number of research analyst reports. JPMorgan Chase & Co. raised Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a report on Friday, January 23rd. Citigroup reiterated a “market perform” rating on shares of Redwood Trust in a research report on Wednesday, February 18th. Wall Street Zen raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Sunday. JonesTrading restated a “buy” rating and set a $6.25 target price on shares of Redwood Trust in a research report on Tuesday, March 3rd. Finally, Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Redwood Trust currently has an average rating of “Moderate Buy” and an average price target of $6.96.

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.