Redwood Trust (NYSE:RWT) Hits New 52-Week High – Here’s What Happened

Redwood Trust, Inc. (NYSE:RWT)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $6.88 and last traded at $6.9350, with a volume of 1596605 shares traded. The stock had previously closed at $5.54.

Trending Headlines about Redwood Trust

Here are the key news stories impacting Redwood Trust this week:

• Positive Sentiment: Company reported record Mortgage Banking production of $7.3 billion for 2025, which management said drove higher production revenues and earnings growth; this operational momentum is the primary driver of the rally. Business Wire Release
• Positive Sentiment: Several outlets highlight sizable revenue upside for the quarter (reported revenue ~ $87.3M vs. lower consensus), signaling strong mortgage‑banking fee and production income that supports near‑term earnings. MarketBeat Summary
• Positive Sentiment: Some analysts (Zacks) reported an EPS beat (Zacks: $0.33 vs. $0.23 estimate), which reinforces the view that platform revenue strength is translating into better-than-expected profitability metrics for the quarter. Zacks Beat Article
• Neutral Sentiment: Management commentary and the earnings presentation provide color on origination pipelines, funding strategies and platform scale — useful for gauging sustainability but not a clear directional change alone. Earnings Presentation Earnings Call Transcript
• Neutral Sentiment: Press coverage and snapshots (TipRanks, local business press) echo the record-platform message; they help investor understanding but largely repeat the company release. TipRanks Announcement
• Negative Sentiment: There are mixed headline numbers across reports: one summary shows EPS slightly below consensus ($0.20 vs. $0.22) and a negative net margin, which could concern investors focused on bottom‑line consistency and profitability trends. MarketBeat Earnings Snapshot
• Negative Sentiment: Disparate metric reporting and a historically lumpy mortgage‑banking business can widen intraday swings; expect volatility as investors digest which figures (revenue vs. EPS) are most indicative of sustainable earnings. Stamford Advocate Snapshot

Wall Street Analyst Weigh In

Several brokerages have weighed in on RWT. Wall Street Zen cut shares of Redwood Trust from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. Jones Trading reduced their price objective on Redwood Trust from $7.00 to $6.25 and set a “buy” rating on the stock in a research note on Thursday, October 30th. JPMorgan Chase & Co. raised shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target on the stock in a research note on Friday, January 23rd. Finally, Zacks Research upgraded Redwood Trust from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $6.75.

Redwood Trust Stock Performance

The stock’s 50 day moving average is $5.63 and its two-hundred day moving average is $5.68. The stock has a market capitalization of $856.48 million, a price-to-earnings ratio of -8.31 and a beta of 1.59. The company has a current ratio of 57.77, a quick ratio of 57.77 and a debt-to-equity ratio of 22.73.

Redwood Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 23rd were paid a $0.18 dividend. The ex-dividend date was Tuesday, December 23rd. This represents a $0.72 annualized dividend and a yield of 10.6%. Redwood Trust’s payout ratio is presently -88.89%.

Institutional Trading of Redwood Trust

Hedge funds and other institutional investors have recently made changes to their positions in the business. Boston Partners raised its stake in shares of Redwood Trust by 2.0% during the 2nd quarter. Boston Partners now owns 2,750,890 shares of the real estate investment trust’s stock worth $16,117,000 after purchasing an additional 54,209 shares in the last quarter. Concurrent Investment Advisors LLC raised its position in Redwood Trust by 4.7% during the second quarter. Concurrent Investment Advisors LLC now owns 41,474 shares of the real estate investment trust’s stock worth $245,000 after acquiring an additional 1,866 shares in the last quarter. Penserra Capital Management LLC acquired a new stake in Redwood Trust in the second quarter valued at $1,114,000. NFC Investments LLC lifted its stake in Redwood Trust by 12.8% in the second quarter. NFC Investments LLC now owns 486,181 shares of the real estate investment trust’s stock valued at $2,873,000 after acquiring an additional 55,081 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC grew its position in shares of Redwood Trust by 26.6% in the 2nd quarter. Campbell & CO Investment Adviser LLC now owns 60,775 shares of the real estate investment trust’s stock valued at $359,000 after acquiring an additional 12,782 shares during the period. 74.34% of the stock is currently 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.