Redwood Trust (NYSE:RWT) Releases Earnings Results, Beats Estimates By $0.01 EPS

Redwood Trust (NYSE:RWT) issued its quarterly earnings data on Thursday. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.01, Zacks reports. Redwood Trust had a net margin of 5.94% and a return on equity of 4.86%. During the same period in the prior year, the company posted $0.14 EPS.

Redwood Trust Trading Down 0.3 %

Shares of RWT traded down $0.02 during mid-day trading on Friday, reaching $7.05. The stock had a trading volume of 1,021,315 shares, compared to its average volume of 1,016,987. The business’s fifty day moving average is $6.72 and its 200 day moving average is $6.44. The firm has a market cap of $931.66 million, a price-to-earnings ratio of 100.71 and a beta of 1.58. Redwood Trust has a 52-week low of $5.45 and a 52-week high of $8.30. The company has a debt-to-equity ratio of 12.26, a current ratio of 9.09 and a quick ratio of 9.09.

Redwood Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 21st were issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 9.08%. The ex-dividend date was Friday, June 21st. Redwood Trust’s payout ratio is 914.29%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Wedbush boosted their target price on shares of Redwood Trust from $6.50 to $7.00 and gave the stock a “neutral” rating in a research report on Friday. JPMorgan Chase & Co. boosted their target price on shares of Redwood Trust from $7.00 to $7.50 and gave the stock an “overweight” rating in a research report on Tuesday, July 16th. JMP Securities lifted their price objective on shares of Redwood Trust from $8.00 to $8.50 and gave the company a “market outperform” rating in a research note on Friday, July 19th. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Redwood Trust from $7.75 to $7.25 and set an “outperform” rating for the company in a research note on Wednesday, April 10th. Four research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Redwood Trust has an average rating of “Moderate Buy” and an average price target of $7.75.

Insider Activity at Redwood Trust

In other news, CFO Brooke Carillo bought 15,000 shares of Redwood Trust stock in a transaction that occurred on Thursday, May 30th. The shares were purchased at an average price of $6.25 per share, with a total value of $93,750.00. Following the completion of the acquisition, the chief financial officer now directly owns 56,772 shares in the company, valued at $354,825. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.50% of the stock is owned by corporate insiders.

About Redwood Trust

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.