Redwood Trust, Inc. (NYSE:RWT) Receives Average Rating of “Hold” from Brokerages

Redwood Trust, Inc. (NYSE:RWT) has received an average rating of “Hold” from the ten analysts that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell recommendation, four have given a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $6.5357.

A number of brokerages have commented on RWT. Zacks Research cut shares of Redwood Trust from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 13th. Wall Street Zen upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. JonesTrading reiterated a “buy” rating and set a $6.25 price target on shares of Redwood Trust in a research report on Thursday, April 30th. Piper Sandler increased their price target on shares of Redwood Trust from $6.00 to $6.50 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Finally, BTIG Research reduced their price target on shares of Redwood Trust from $8.50 to $6.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RWT. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Redwood Trust by 26.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 492,661 shares of the real estate investment trust’s stock worth $2,990,000 after purchasing an additional 103,893 shares during the last quarter. Jane Street Group LLC bought a new position in shares of Redwood Trust in the first quarter worth approximately $2,018,000. Strs Ohio bought a new position in shares of Redwood Trust in the first quarter worth approximately $149,000. XTX Topco Ltd grew its holdings in shares of Redwood Trust by 35.4% in the second quarter. XTX Topco Ltd now owns 14,513 shares of the real estate investment trust’s stock worth $86,000 after purchasing an additional 3,795 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in shares of Redwood Trust by 331.8% in the second quarter. Russell Investments Group Ltd. now owns 7,915 shares of the real estate investment trust’s stock worth $47,000 after purchasing an additional 6,082 shares during the last quarter. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Stock Down 3.8%

RWT stock opened at $4.97 on Tuesday. Redwood Trust has a 1-year low of $4.89 and a 1-year high of $6.97. The company has a current ratio of 59.63, a quick ratio of 59.63 and a debt-to-equity ratio of 28.42. The company’s 50 day moving average is $5.45 and its 200 day moving average is $5.65. The stock has a market cap of $621.70 million, a price-to-earnings ratio of -6.37 and a beta of 1.37.

Redwood Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 14.5%. The ex-dividend date is Tuesday, June 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently -92.31%.

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.