Brokerages Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $8.08

Shares of Redwood Trust, Inc. (NYSE:RWT) have received an average rating of “Moderate Buy” from the nine ratings firms that are presently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation, five have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $8.14.

RWT has been the subject of several research reports. Wedbush increased their target price on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a research report on Friday, August 2nd. JPMorgan Chase & Co. lifted 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. Raymond James upped their price target on shares of Redwood Trust from $8.50 to $9.50 and gave the company a “strong-buy” rating in a research report on Thursday, September 19th. Piper Sandler lifted their price target on shares of Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a report on Monday, August 5th. Finally, JMP Securities boosted their price objective on shares of Redwood Trust from $8.50 to $9.00 and gave the stock a “market outperform” rating in a research note on Friday.

Institutional Investors Weigh In On Redwood Trust

Several institutional investors and hedge funds have recently made changes to their positions in the business. Concurrent Investment Advisors LLC acquired a new position in Redwood Trust in the second quarter valued at approximately $69,000. MQS Management LLC acquired a new position in shares of Redwood Trust during the 1st quarter valued at $72,000. Algert Global LLC acquired a new position in shares of Redwood Trust during the 2nd quarter valued at $86,000. Ameritas Investment Partners Inc. boosted its stake in Redwood Trust by 26.5% during the first quarter. Ameritas Investment Partners Inc. now owns 14,324 shares of the real estate investment trust’s stock worth $91,000 after acquiring an additional 3,000 shares in the last quarter. Finally, Intech Investment Management LLC acquired a new stake in Redwood Trust in the second quarter worth $113,000. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Trading Up 1.1 %

Shares of Redwood Trust stock opened at $7.56 on Friday. The firm has a market capitalization of $999.58 million, a PE ratio of 108.00 and a beta of 1.58. The company has a current ratio of 50.47, a quick ratio of 50.47 and a debt-to-equity ratio of 12.97. The firm’s 50 day moving average is $7.43 and its 200 day moving average is $6.76. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.01. Redwood Trust had a net margin of 4.45% and a return on equity of 4.93%. During the same quarter in the prior year, the firm earned $0.14 earnings per share. Equities research analysts forecast that Redwood Trust will post 0.5 earnings per share for the current fiscal year.

Redwood Trust Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Monday, September 23rd were issued a dividend of $0.17 per share. This is an increase from Redwood Trust’s previous quarterly dividend of $0.16. This represents a $0.68 dividend on an annualized basis and a yield of 8.99%. The ex-dividend date of this dividend was Monday, September 23rd. Redwood Trust’s dividend payout ratio (DPR) is presently 971.43%.

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.