Zacks Investment Research upgraded shares of Redwood Trust Inc. (NYSE:RWT) from a hold rating to a buy rating in a research note issued to investors on Tuesday. The brokerage currently has $16.00 price objective on the stock.
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. “
Other research analysts have also recently issued reports about the company. Maxim Group cut Redwood Trust from a buy rating to a hold rating in a research report on Wednesday, August 10th. Keefe, Bruyette & Woods cut Redwood Trust from an outperform rating to a market perform rating and set a $14.50 price objective on the stock. in a research report on Tuesday, July 19th. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $15.55.
Shares of Redwood Trust (NYSE:RWT) traded up 0.95% during mid-day trading on Tuesday, reaching $13.83. The company’s stock had a trading volume of 47,145 shares. Redwood Trust has a 12-month low of $9.26 and a 12-month high of $15.24. The company’s 50-day moving average price is $14.16 and its 200-day moving average price is $13.76. The stock has a market capitalization of $1.06 billion, a P/E ratio of 10.08 and a beta of 0.71.
Redwood Trust (NYSE:RWT) last announced its earnings results on Monday, August 8th. The company reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.10. Redwood Trust had a return on equity of 12.09% and a net margin of 41.54%. During the same period in the previous year, the business earned $0.31 EPS. On average, equities research analysts forecast that Redwood Trust will post $1.35 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 8.18%. The ex-dividend date was Tuesday, September 13th. Redwood Trust’s dividend payout ratio (DPR) is presently 85.50%.
A number of hedge funds have recently modified their holdings of RWT. TIAA CREF Investment Management LLC increased its stake in shares of Redwood Trust by 4.4% in the first quarter. TIAA CREF Investment Management LLC now owns 304,394 shares of the company’s stock valued at $3,981,000 after buying an additional 12,746 shares during the period. Hilton Capital Management LLC increased its stake in shares of Redwood Trust by 3.9% in the second quarter. Hilton Capital Management LLC now owns 772,682 shares of the company’s stock valued at $10,671,000 after buying an additional 28,886 shares during the period. Prudential Financial Inc. increased its stake in shares of Redwood Trust by 118.6% in the first quarter. Prudential Financial Inc. now owns 247,952 shares of the company’s stock valued at $3,243,000 after buying an additional 134,500 shares during the period. Benchmark Capital Advisors increased its stake in shares of Redwood Trust by 24.6% in the first quarter. Benchmark Capital Advisors now owns 116,367 shares of the company’s stock valued at $1,522,000 after buying an additional 23,000 shares during the period. Finally, Bayesian Capital Management LP acquired a new stake in shares of Redwood Trust during the first quarter valued at about $239,000. 86.85% of the stock is currently 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.
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