Redwood Trust (NYSE:RWT) Cut to “Sell” at StockNews.com

Redwood Trust (NYSE:RWT) was downgraded by equities research analysts at StockNews.com from a “hold” rating to a “sell” rating in a note issued to investors on Monday.

Other equities research analysts also recently issued research reports about the stock. JPMorgan Chase & Co. reduced their price target on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research report on Tuesday, January 21st. JMP Securities reiterated a “market outperform” rating and set a $8.00 price target on shares of Redwood Trust in a research note on Friday. One research analyst has rated the stock with a sell rating, four have given a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $7.84.

Redwood Trust Trading Down 1.5 %

RWT stock traded down $0.10 during trading on Monday, hitting $6.37. 2,810,329 shares of the company traded hands, compared to its average volume of 764,295. The firm has a market capitalization of $843.49 million, a PE ratio of 11.57 and a beta of 1.57. The company has a debt-to-equity ratio of 14.55, a quick ratio of 44.36 and a current ratio of 44.36. The company has a 50-day moving average of $6.55 and a 200-day moving average of $7.08. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). The company had revenue of $27.60 million during the quarter, compared to the consensus estimate of $26.00 million. Redwood Trust had a return on equity of 6.01% and a net margin of 9.35%. Analysts predict that Redwood Trust will post 0.55 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Redwood Trust

Several large investors have recently made changes to their positions in the company. Brown Brothers Harriman & Co. purchased a new stake in Redwood Trust during the third quarter valued at approximately $39,000. Sovran Advisors LLC purchased a new stake in Redwood Trust in the 4th quarter worth about $63,000. KBC Group NV raised its holdings in shares of Redwood Trust by 86.7% in the fourth quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock worth $67,000 after buying an additional 4,788 shares during the period. Zacks Investment Management bought a new stake in shares of Redwood Trust during the fourth quarter worth $74,000. Finally, Creative Planning purchased a new stake in Redwood Trust in the 3rd quarter valued at about $91,000. 74.34% of the stock is owned by institutional investors.

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.