Redwood Trust (NYSE:RWT) Shares Gap Down - What's Next?

Redwood Trust, Inc. (NYSE:RWT - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $5.54, but opened at $5.26. Redwood Trust shares last traded at $5.37, with a volume of 278,960 shares.

Analysts Set New Price Targets

RWT has been the subject of a number of research reports. JPMorgan Chase & Co. lowered their target price on Redwood Trust from $6.50 to $5.50 and set a "neutral" rating for the company in a research report on Wednesday, April 16th. StockNews.com upgraded shares of Redwood Trust from a "sell" rating to a "hold" rating in a research report on Wednesday, March 5th. Jones Trading dropped their price target on Redwood Trust from $8.00 to $7.00 and set a "buy" rating for the company in a research report on Thursday. Finally, JMP Securities decreased their price objective on Redwood Trust from $8.00 to $7.50 and set a "market outperform" rating on the stock in a research report on Thursday. Five investment analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $7.50.

Redwood Trust Price Performance

The stock has a 50 day moving average price of $6.05 and a two-hundred day moving average price of $6.63. The firm has a market cap of $722.10 million, a PE ratio of 16.46 and a beta of 1.15. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.09.

Redwood Trust (NYSE:RWT - Get Free Report) last issued its earnings results on Thursday, February 13th. 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). Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. The firm had revenue of $27.60 million during the quarter, compared to analysts' expectations of $26.00 million. As a group, equities analysts expect that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Monday, March 24th were given a dividend of $0.18 per share. The ex-dividend date was Monday, March 24th. This represents a $0.72 annualized dividend and a yield of 13.26%. Redwood Trust's dividend payout ratio is presently 218.18%.

Hedge Funds Weigh In On Redwood Trust

Hedge funds have recently bought and sold shares of the business. Invesco Ltd. grew its position in shares of Redwood Trust by 150.9% in the fourth quarter. Invesco Ltd. now owns 1,995,520 shares of the real estate investment trust's stock valued at $13,031,000 after purchasing an additional 1,200,050 shares during the period. Balyasny Asset Management L.P. increased its stake in Redwood Trust by 19.2% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,994,294 shares of the real estate investment trust's stock worth $13,023,000 after buying an additional 321,612 shares in the last quarter. Angel Oak Capital Advisors LLC acquired a new position in shares of Redwood Trust during the fourth quarter valued at approximately $1,726,000. Boston Partners lifted its position in shares of Redwood Trust by 8.3% in the fourth quarter. Boston Partners now owns 2,707,027 shares of the real estate investment trust's stock valued at $17,561,000 after acquiring an additional 206,698 shares in the last quarter. Finally, Northern Trust Corp increased its position in shares of Redwood Trust by 14.4% during the fourth quarter. Northern Trust Corp now owns 1,569,301 shares of the real estate investment trust's stock worth $10,248,000 after purchasing an additional 197,719 shares in the last quarter. Hedge funds and other institutional investors 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.

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