Redwood Trust, Inc. (NYSE:RWT) Receives $7.84 Average Target Price from Analysts

Redwood Trust, Inc. (NYSE:RWT) has been assigned a consensus recommendation of “Moderate Buy” from the eight brokerages that are covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $7.84.

A number of brokerages recently commented on RWT. JMP Securities lowered their price objective on Redwood Trust from $9.00 to $8.00 and set a “market outperform” rating for the company in a research report on Thursday, January 23rd. StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th. Finally, 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 report on Tuesday, January 21st.

Redwood Trust Price Performance

Shares of RWT stock opened at $6.56 on Friday. The stock has a 50-day moving average price of $6.66 and a 200 day moving average price of $7.13. 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 has a market cap of $868.67 million, a price-to-earnings ratio of 11.92 and a beta of 1.57. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.15.

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 given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 10.98%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. The ex-dividend date was Monday, December 23rd. Redwood Trust’s dividend payout ratio is presently 130.91%.

Institutional Trading of Redwood Trust

Several large investors have recently bought and sold shares of the business. Wellington Management Group LLP boosted its stake in Redwood Trust by 6.9% in the third quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock valued at $112,945,000 after buying an additional 941,223 shares in the last quarter. State Street Corp boosted its stake in Redwood Trust by 2.0% in the third quarter. State Street Corp now owns 5,189,667 shares of the real estate investment trust’s stock valued at $40,116,000 after buying an additional 102,274 shares in the last quarter. Geode Capital Management LLC boosted its stake in Redwood Trust by 0.8% in the third quarter. Geode Capital Management LLC now owns 3,038,438 shares of the real estate investment trust’s stock valued at $23,492,000 after buying an additional 25,444 shares in the last quarter. Ceredex Value Advisors LLC boosted its stake in Redwood Trust by 22.8% in the third quarter. Ceredex Value Advisors LLC now owns 1,113,600 shares of the real estate investment trust’s stock valued at $8,608,000 after buying an additional 207,088 shares in the last quarter. Finally, Van ECK Associates Corp boosted its stake in Redwood Trust by 18.0% in the fourth quarter. Van ECK Associates Corp now owns 1,085,593 shares of the real estate investment trust’s stock valued at $7,089,000 after buying an additional 165,281 shares in the last quarter. 74.34% of the stock is owned by institutional investors and hedge funds.

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.