Redwood Trust (NYSE:RWT) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Redwood Trust (NYSE:RWT - Get Free Report) announced its quarterly earnings data on Thursday. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.03), Zacks reports. Redwood Trust had a return on equity of 6.01% and a net margin of 9.35%. The company had revenue of $27.60 million for the quarter, compared to the consensus estimate of $26.00 million.

Redwood Trust Price Performance

Shares of RWT traded down $0.10 during trading hours on Monday, hitting $6.37. 2,810,329 shares of the company were exchanged, compared to its average volume of 764,295. The company has a market cap of $843.49 million, a price-to-earnings ratio of 11.57 and a beta of 1.57. Redwood Trust has a fifty-two week low of $5.45 and a fifty-two week high of $8.15. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.55. The firm's fifty day moving average is $6.55 and its 200 day moving average is $7.08.

Redwood Trust Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were issued a dividend of $0.18 per share. This is a positive change from Redwood Trust's previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 11.31%. The ex-dividend date was Monday, December 23rd. Redwood Trust's dividend payout ratio is 130.91%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on RWT. JMP Securities reissued a "market outperform" rating and set a $8.00 target price on shares of Redwood Trust in a report on Friday. StockNews.com lowered Redwood Trust from a "hold" rating to a "sell" rating in a report on Monday. Finally, JPMorgan Chase & Co. decreased their target price on Redwood Trust from $7.00 to $6.50 and set a "neutral" rating on the stock in a report on Tuesday, January 21st. One research analyst has rated the stock with a sell rating, four have given a hold rating, three have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, Redwood Trust currently has a consensus rating of "Hold" and a consensus target price of $7.84.

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.