Redwood Trust (RWT) Stock Price, News & Analysis

Company Overview

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Residential Investor Mortgage Banking segment operates a platform that originates business purpose loans to investors in single-family and multifamily residential properties and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential consumer and investor securitization activities, and business purpose lending bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. The company is elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.

Key Stats

• Today's Range: $6.95 to $7.09
• 50-Day Range: $7.02 to $8.09
• 52-Week Range: $5.45 to $8.15
• Volume: 770,429 shs
• Average Volume: 910,689 shs
• Market Capitalization: $928.54 million
• P/E Ratio: 12.76
• Dividend Yield: 9.69%
• Price Target: $8.19
• Consensus Rating: Moderate Buy

Redwood Trust Stock Analysis - MarketRank™

Redwood Trust scored higher than 74% of companies evaluated by MarketBeat, and ranked 349th out of 930 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Redwood Trust has received a consensus rating of Moderate Buy. The company's average rating score is 2.78, and is based on 5 buy ratings, 3 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Redwood Trust has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.8 / 5
• Proj. Earnings Growth: 48.21%

Earnings Growth

Earnings for Redwood Trust are expected to grow by 48.21% in the coming year, from $0.56 to $0.83 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Redwood Trust is 12.76, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 125.26.

Price to Earnings Ratio vs. Sector

The P/E ratio of Redwood Trust is 12.76, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 46.18.

Price to Book Value per Share Ratio

Redwood Trust has a P/B Ratio of 0.80. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

3.57% of the outstanding shares of Redwood Trust have been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 6.1.

Change versus previous month

Short interest in Redwood Trust has recently increased by 1.72%, indicating that investor sentiment is decreasing.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Redwood Trust is a leading dividend payer. It pays a dividend yield of 9.55%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Redwood Trust does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Redwood Trust is 123.64%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Redwood Trust will have a dividend payout ratio of 81.93% in the coming year. This indicates that Redwood Trust may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.57% of the outstanding shares of Redwood Trust have been sold short.

Short Interest Ratio / Days to Cover

Redwood Trust has a short interest ratio ("days to cover") of 6.1.

Change versus previous month

Short interest in Redwood Trust has recently increased by 1.72%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: N/A

News Sentiment

Redwood Trust has a news sentiment score of 1.44. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.76 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Redwood Trust this week, compared to 2 articles on an average week.

Search Interest

Only 1 people have searched for RWT on MarketBeat in the last 30 days. This is a decrease of -75% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Redwood Trust insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.50% of the stock of Redwood Trust is held by insiders.

Percentage Held by Institutions

74.34% of the stock of Redwood Trust is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RWT Stock Analysis - Frequently Asked Questions

How have RWT shares performed this year?

Redwood Trust's stock was trading at $7.41 at the beginning of the year. Since then, RWT stock has decreased by 5.3% and is now trading at $7.02.
View the best growth stocks for 2024 here.

How were Redwood Trust's earnings last quarter?

Redwood Trust, Inc. (NYSE:RWT) announced its earnings results on Thursday, August, 1st. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.01. Redwood Trust had a net margin of 9.35% and a trailing twelve-month return on equity of 6.01%.

Who are Redwood Trust's major shareholders?

Redwood Trust's top institutional shareholders include Wellington Management Group LLP (11.05%), State Street Corp (3.92%), Geode Capital Management LLC (2.30%) and Charles Schwab Investment Management Inc. (1.22%). Insiders that own company stock include Andrew P Stone, Collin L Cochrane and Brooke Carillo.
View institutional ownership trends.

How do I buy shares of Redwood Trust?

Shares of RWT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Redwood Trust own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Redwood Trust investors own include Rithm Capital (RITM), Meta Platforms (META), NVIDIA (NVDA), Energy Transfer (ET), Verizon Communications (VZ), Annaly Capital Management (NLY) and AT&T (T).

Company Calendar

• Last Earnings: 8/01/2024
• Ex-Dividend for 9/30 Dividend: 9/23/2024
• Dividend Payable: 9/30/2024
• Today: 11/21/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/18/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Real estate investment trusts
• Sub-Industry: Mortgage REITs
• Current Symbol: NYSE:RWT
• CUSIP: 75807540
• CIK: 930236
• Web: www.redwoodtrust.com
• Phone: (415) 389-7373
• Fax: 415-381-1773
• Employees: 289
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $8.19
• High Stock Price Target: $9.50
• Low Stock Price Target: $7.00
• Potential Upside/Downside: +16.7%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.78
• Research Coverage: 9 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.55
• Trailing P/E Ratio: 12.76
• Forward P/E Ratio: 12.54
• P/E Growth: N/A
• Net Income: $-2,270,000.00
• Net Margins: 9.35%
• Pretax Margin: 10.96%
• Return on Equity: 6.01%
• Return on Assets: 0.43%

Debt

• Debt-to-Equity Ratio: 14.55
• Current Ratio: 44.36
• Quick Ratio: 44.36

Sales & Book Value

• Annual Sales: $724 million
• Price / Sales: 1.28
• Cash Flow: $0.61 per share
• Price / Cash Flow: 11.57
• Book Value: $8.74 per share
• Price / Book: 0.80

Miscellaneous

• Outstanding Shares: 132,270,000
• Free Float: 128,960,000
• Market Cap: $928.54 million
• Optionable: Optionable
• Beta: 1.59