Redwood Trust Inc. (NYSE:RWT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage presently has a $16.00 price objective on the stock. Zacks Investment Research’s price objective suggests a potential upside of 17.82% from the company’s previous close.
According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “
A number of other equities analysts also recently commented on the stock. Keefe, Bruyette & Woods downgraded shares of Redwood Trust from an “outperform” rating to a “market perform” rating and set a $14.50 target price on the stock. in a research note on Tuesday, July 19th. Maxim Group cut shares of Redwood Trust from a “buy” rating to a “hold” rating in a research report on Wednesday, August 10th. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $15.55.
Shares of Redwood Trust (NYSE:RWT) opened at 13.58 on Tuesday. The company has a market cap of $1.04 billion, a P/E ratio of 9.90 and a beta of 0.71. Redwood Trust has a 52-week low of $9.26 and a 52-week high of $15.24. The firm has a 50-day moving average of $14.13 and a 200-day moving average of $13.75.
Redwood Trust (NYSE:RWT) last issued its earnings results on Monday, August 8th. The company reported $0.47 EPS for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.10. Redwood Trust had a net margin of 41.54% and a return on equity of 12.09%. During the same period in the prior year, the company posted $0.31 EPS. Equities research analysts forecast that Redwood Trust will post $1.35 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were given a dividend of $0.28 per share. The ex-dividend date was Tuesday, September 13th. This represents a $1.12 dividend on an annualized basis and a yield of 8.25%. Redwood Trust’s payout ratio is 85.50%.
A number of large investors have recently bought and sold shares of RWT. Norges Bank purchased a new stake in Redwood Trust during the fourth quarter worth approximately $9,758,000. Prudential Financial Inc. boosted its stake in Redwood Trust by 118.6% in the first quarter. Prudential Financial Inc. now owns 247,952 shares of the company’s stock worth $3,243,000 after buying an additional 134,500 shares during the last quarter. First Trust Advisors LP purchased a new stake in Redwood Trust during the second quarter worth approximately $1,694,000. KBC Group NV boosted its stake in Redwood Trust by 1,381.2% in the second quarter. KBC Group NV now owns 120,571 shares of the company’s stock worth $1,665,000 after buying an additional 112,431 shares during the last quarter. Finally, GSA Capital Partners LLP purchased a new stake in Redwood Trust during the second quarter worth approximately $1,237,000. 86.85% of the stock is owned by institutional investors.
About Redwood Trust
Redwood Trust, Inc, together with its subsidiaries, focuses on investing in mortgage- and other real estate-related assets. The Company operates through three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. Its residential mortgage banking segment consists of operating a mortgage loan conduit that acquires residential whole loans from third-party originators for subsequent sale, securitization or transfer to its investment portfolio.