Redwood Trust (NYSE:RWT) Hits New 12-Month High at $8.02

Redwood Trust, Inc. (NYSE:RWT) reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $8.02 and last traded at $7.99, with a volume of 201871 shares. The stock had previously closed at $7.84.

Wall Street Analysts Forecast Growth

RWT has been the subject of several analyst reports. JMP Securities increased their target price on shares of Redwood Trust from $8.00 to $8.50 and gave the company a “market outperform” rating in a report on Friday, July 19th. JPMorgan Chase & Co. upped their target price on Redwood Trust from $7.00 to $7.50 and gave the company an “overweight” rating in a report on Tuesday, July 16th. Piper Sandler boosted their price objective on Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research report on Monday, August 5th. Finally, Wedbush upped their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a research note on Friday, August 2nd. Four analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $7.81.

Redwood Trust Price Performance

The stock has a market cap of $1.06 billion, a PE ratio of 115.00 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 business has a 50-day moving average price of $7.25 and a 200 day moving average price of $6.58.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Thursday, August 1st. 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. Redwood Trust had a return on equity of 4.93% and a net margin of 4.45%. During the same quarter in the previous year, the business posted $0.14 EPS. As a group, research analysts forecast that Redwood Trust, Inc. will post 0.5 earnings per share for the current fiscal year.

Redwood Trust Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Monday, September 23rd will be issued a $0.17 dividend. The ex-dividend date is Monday, September 23rd. This represents a $0.68 annualized dividend and a dividend yield of 8.45%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.16. Redwood Trust’s dividend payout ratio is presently 914.29%.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently added to or reduced their stakes in the business. M&T Bank Corp increased its stake in Redwood Trust by 13.9% in the 4th quarter. M&T Bank Corp now owns 25,882 shares of the real estate investment trust’s stock worth $192,000 after acquiring an additional 3,162 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Redwood Trust by 7.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,798,260 shares of the real estate investment trust’s stock worth $13,325,000 after purchasing an additional 127,435 shares during the last quarter. Principal Financial Group Inc. raised its stake in Redwood Trust by 0.4% in the fourth quarter. Principal Financial Group Inc. now owns 617,725 shares of the real estate investment trust’s stock valued at $4,577,000 after purchasing an additional 2,296 shares in the last quarter. Dynamic Technology Lab Private Ltd lifted its position in Redwood Trust by 8.2% during the fourth quarter. Dynamic Technology Lab Private Ltd now owns 24,292 shares of the real estate investment trust’s stock valued at $180,000 after purchasing an additional 1,847 shares during the last quarter. Finally, Quest Partners LLC purchased a new position in Redwood Trust in the 4th quarter worth approximately $107,000. Institutional investors own 74.34% of the company’s stock.

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.