Redwood Trust (NYSE:RWT) Stock Rating Lowered by StockNews.com

Redwood Trust (NYSE:RWT - Get Free Report) was downgraded by investment analysts at StockNews.com from a "hold" rating to a "sell" rating in a note issued to investors on Monday.

Other equities analysts have also recently issued reports about the company. JMP Securities reissued a "market outperform" rating and set a $8.00 target price on shares of Redwood Trust in a research note on Friday, February 14th. JPMorgan Chase & Co. reduced their target price 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. One analyst has rated the stock with a sell rating, four have assigned a hold rating, three have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Redwood Trust has a consensus rating of "Hold" and an average target price of $7.84.

Redwood Trust Price Performance

Shares of RWT traded down $0.01 during trading hours on Monday, reaching $6.43. 670,727 shares of the company's stock traded hands, compared to its average volume of 854,918. The stock has a market cap of $851.44 million, a PE ratio of 19.47 and a beta of 1.57. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.09. The firm's 50 day simple moving average is $6.52 and its 200-day simple moving average is $7.07. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.15.

Redwood Trust (NYSE:RWT - Get Free Report) last announced 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 company had revenue of $27.60 million during the quarter, compared to analysts' expectations of $26.00 million. Equities analysts expect that Redwood Trust will post 0.78 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of RWT. Brown Brothers Harriman & Co. bought a new position in Redwood Trust in the third quarter valued at about $39,000. Sovran Advisors LLC bought a new position in Redwood Trust in the fourth quarter valued at about $63,000. KBC Group NV lifted its holdings in Redwood Trust by 86.7% in the fourth quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust's stock valued at $67,000 after acquiring an additional 4,788 shares during the period. Zacks Investment Management bought a new position in Redwood Trust in the fourth quarter valued at about $74,000. Finally, Creative Planning bought a new position in Redwood Trust in the third quarter valued at about $91,000. 74.34% of the stock is owned by institutional investors.

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.