Redwood Trust (NYSE:RWT) Reaches New 12-Month Low – Here’s Why

Redwood Trust, Inc. (NYSE:RWT)’s stock price reached a new 52-week low during trading on Friday . The stock traded as low as $5.43 and last traded at $5.40, with a volume of 877285 shares. The stock had previously closed at $5.88.

Analyst Ratings Changes

Several analysts have weighed in on RWT shares. JPMorgan Chase & Co. dropped their price target on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 21st. JMP Securities reissued a “market outperform” rating and set a $8.00 price target on shares of Redwood Trust in a report on Friday, February 14th. Finally, StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research note on Wednesday, March 5th. Five research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Redwood Trust has a consensus rating of “Moderate Buy” and an average price target of $7.75.

Redwood Trust Stock Down 8.8 %

The stock has a market capitalization of $710.97 million, a price-to-earnings ratio of 16.26 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. The business’s 50-day moving average is $6.37 and its two-hundred day moving average is $6.84.

Redwood Trust (NYSE:RWT) last released its quarterly earnings data on Thursday, February 13th. The real estate investment trust reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). The business had revenue of $27.60 million during the quarter, compared to analyst estimates of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. Equities analysts anticipate that Redwood Trust, Inc. will post 0.78 EPS for the current year.

Redwood Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 24th were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 13.42%. The ex-dividend date of this dividend was Monday, March 24th. Redwood Trust’s dividend payout ratio is presently 218.18%.

Hedge Funds Weigh In On Redwood Trust

Several large investors have recently made changes to their positions in the stock. BNP Paribas Financial Markets increased its stake in Redwood Trust by 7.2% during the third quarter. BNP Paribas Financial Markets now owns 28,909 shares of the real estate investment trust’s stock worth $223,000 after purchasing an additional 1,932 shares during the period. Illinois Municipal Retirement Fund increased its position in shares of Redwood Trust by 3.4% during the fourth quarter. Illinois Municipal Retirement Fund now owns 72,744 shares of the real estate investment trust’s stock worth $475,000 after acquiring an additional 2,383 shares during the period. Focus Partners Wealth raised its stake in shares of Redwood Trust by 14.1% in the fourth quarter. Focus Partners Wealth now owns 20,164 shares of the real estate investment trust’s stock valued at $132,000 after acquiring an additional 2,488 shares in the last quarter. Franklin Resources Inc. boosted its holdings in Redwood Trust by 4.6% in the third quarter. Franklin Resources Inc. now owns 72,486 shares of the real estate investment trust’s stock valued at $548,000 after purchasing an additional 3,206 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Redwood Trust by 18.0% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 29,725 shares of the real estate investment trust’s stock worth $230,000 after purchasing an additional 4,527 shares in the last quarter. 74.34% of the stock is currently 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.