Redwood Trust, Inc. (NYSE:RWT) Receives $7.75 Consensus Price Target from Analysts

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have received an average recommendation of "Moderate Buy" from the seven research firms that are covering the company, Marketbeat.com reports. Four research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $7.75.

RWT has been the topic of a number of recent research reports. JPMorgan Chase & Co. lowered their price objective on Redwood Trust from $7.00 to $6.50 and set a "neutral" rating on the stock in a research note on Tuesday, January 21st. JMP Securities reaffirmed a "market outperform" rating and issued a $8.00 price target on shares of Redwood Trust in a research note on Friday, February 14th. Finally, StockNews.com upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a research note on Wednesday, March 5th.

Redwood Trust Stock Performance

NYSE RWT traded down $0.04 on Friday, reaching $6.13. The stock had a trading volume of 560,983 shares, compared to its average volume of 850,491. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36. The company has a market cap of $811.69 million, a P/E ratio of 18.56 and a beta of 1.63. The firm has a fifty day moving average of $6.44 and a two-hundred day moving average of $6.94.

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Redwood Trust (NYSE:RWT - Get Free Report) last released its quarterly earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 EPS for the quarter, missing analysts' consensus estimates of $0.16 by ($0.03). Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. The business had revenue of $27.60 million for the quarter, compared to the consensus estimate of $26.00 million. On average, equities research analysts anticipate that Redwood Trust will post 0.78 EPS for the current year.

Redwood Trust Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Monday, March 24th will be given a $0.18 dividend. The ex-dividend date is Monday, March 24th. This represents a $0.72 dividend on an annualized basis and a yield of 11.76%. Redwood Trust's dividend payout ratio is currently 218.18%.

Institutional Investors Weigh In On Redwood Trust

Hedge funds have recently modified their holdings of the company. BNP Paribas Financial Markets raised its position in Redwood Trust by 7.2% in the third quarter. BNP Paribas Financial Markets now owns 28,909 shares of the real estate investment trust's stock valued at $223,000 after purchasing an additional 1,932 shares during the last quarter. Illinois Municipal Retirement Fund boosted its position in Redwood Trust by 3.4% during the 4th quarter. Illinois Municipal Retirement Fund now owns 72,744 shares of the real estate investment trust's stock worth $475,000 after buying an additional 2,383 shares during the period. Focus Partners Wealth grew its holdings in Redwood Trust by 14.1% during the 4th quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust's stock worth $132,000 after acquiring an additional 2,488 shares during the last quarter. Franklin Resources Inc. increased its position in Redwood Trust by 4.6% in the 3rd quarter. Franklin Resources Inc. now owns 72,486 shares of the real estate investment trust's stock valued at $548,000 after acquiring an additional 3,206 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Redwood Trust by 18.0% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 29,725 shares of the real estate investment trust's stock valued at $230,000 after acquiring an additional 4,527 shares during the last quarter. Institutional investors and hedge funds own 74.34% of the company's stock.

Redwood Trust Company Profile

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.