Redwood Trust, Inc. (NYSE:RWT) Receives Average Rating of "Moderate Buy" from Brokerages

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have received an average recommendation of "Moderate Buy" from the nine ratings firms that are presently covering the company, Marketbeat.com reports. Three analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $8.19.

RWT has been the subject of several recent research reports. Raymond James increased their price target on Redwood Trust from $8.50 to $9.50 and gave the stock a "strong-buy" rating in a research report on Thursday, September 19th. Piper Sandler increased their target price on Redwood Trust from $6.50 to $7.50 and gave the stock a "neutral" rating in a research report on Monday, August 5th. JMP Securities boosted their price target on shares of Redwood Trust from $8.50 to $9.00 and gave the company a "market outperform" rating in a report on Friday, October 4th. StockNews.com upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a research report on Monday, November 11th. Finally, Wells Fargo & Company lifted their price objective on shares of Redwood Trust from $7.50 to $8.50 and gave the company an "equal weight" rating in a research report on Friday, September 20th.

Redwood Trust Price Performance

Shares of NYSE:RWT remained flat at $7.06 on Monday. 455,736 shares of the company's stock were exchanged, compared to its average volume of 1,081,797. The business has a fifty day simple moving average of $7.54 and a 200-day simple moving average of $7.06. The company has a debt-to-equity ratio of 14.55, a current ratio of 44.36 and a quick ratio of 44.36. Redwood Trust has a 52 week low of $5.45 and a 52 week high of $8.15. The company has a market cap of $933.81 million, a price-to-earnings ratio of 12.84 and a beta of 1.59.

Redwood Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Monday, September 23rd were paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 9.63%. The ex-dividend date was Monday, September 23rd. This is a positive change from Redwood Trust's previous quarterly dividend of $0.16. Redwood Trust's dividend payout ratio (DPR) is currently 123.64%.

Institutional Investors Weigh In On Redwood Trust

A number of institutional investors have recently added to or reduced their stakes in RWT. Vanguard Group Inc. grew its holdings in Redwood Trust by 19.5% during the first quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust's stock worth $98,763,000 after acquiring an additional 2,530,937 shares during the period. Wellington Management Group LLP raised its holdings in shares of Redwood Trust by 6.9% in the 3rd quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust's stock worth $112,945,000 after purchasing an additional 941,223 shares in the last quarter. Ceredex Value Advisors LLC lifted its stake in Redwood Trust by 48.8% during the second quarter. Ceredex Value Advisors LLC now owns 906,512 shares of the real estate investment trust's stock valued at $5,883,000 after purchasing an additional 297,100 shares during the last quarter. NFC Investments LLC lifted its stake in Redwood Trust by 127.7% during the third quarter. NFC Investments LLC now owns 484,975 shares of the real estate investment trust's stock valued at $3,749,000 after purchasing an additional 271,975 shares during the last quarter. Finally, Van ECK Associates Corp boosted its holdings in Redwood Trust by 21.7% during the second quarter. Van ECK Associates Corp now owns 976,283 shares of the real estate investment trust's stock worth $6,336,000 after buying an additional 174,317 shares in the last quarter. 74.34% of the stock is currently owned by institutional investors and hedge funds.

About Redwood Trust

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.