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

Redwood Trust (NYSE:RWT) released its quarterly earnings data on Thursday. The real estate investment trust reported $0.13 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%.

Redwood Trust Stock Performance

NYSE:RWT opened at $6.14 on Friday. The firm has a 50-day moving average of $6.59 and a two-hundred day moving average of $7.10. The company has a debt-to-equity ratio of 14.55, a current ratio of 44.36 and a quick ratio of 44.36. The stock has a market cap of $813.67 million, a P/E ratio of 11.16 and a beta of 1.57. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15.

Redwood Trust Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Monday, December 23rd were paid a dividend of $0.18 per share. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. The ex-dividend date of this dividend was Monday, December 23rd. This represents a $0.72 annualized dividend and a yield of 11.73%. Redwood Trust’s payout ratio is 130.91%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on RWT shares. JMP Securities reduced their price target on shares of Redwood Trust from $9.00 to $8.00 and set a “market outperform” rating on the stock in a research report on Thursday, January 23rd. JPMorgan Chase & Co. reduced their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. Finally, StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Monday, November 11th. Five analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target 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.