Redwood Trust, Inc. (NYSE:RWT – Get Free Report) President Dashiell Robinson purchased 63,211 shares of the stock in a transaction on Wednesday, September 16th. The stock was acquired at an average cost of $3.98 per share, with a total value of $251,579.78. Following the completion of the purchase, the president directly owned 395,050 shares of the company’s stock, valued at $1,572,299. The trade was a 19.05% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link.
Redwood Trust Stock Performance
NYSE RWT opened at $3.90 on Thursday. The company has a 50-day simple moving average of $4.66 and a two-hundred day simple moving average of $5.17. Redwood Trust, Inc. has a 12-month low of $3.22 and a 12-month high of $6.97. The firm has a market cap of $490.51 million, a price-to-earnings ratio of -97.60 and a beta of 1.37. The company has a quick ratio of 67.49, a current ratio of 67.49 and a debt-to-equity ratio of 31.69.
Redwood Trust (NYSE:RWT – Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The firm had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. On average, equities analysts forecast that Redwood Trust, Inc. will post 1.03 EPS for the current year.
Redwood Trust Dividend Announcement
Redwood Trust News Roundup
Here are the key news stories impacting Redwood Trust this week:
- Positive Sentiment: Redwood Trust insiders made substantial open-market purchases near $3.84–$3.98 per share. CEO Christopher Abate bought 100,000 shares, President Dashiell Robinson purchased 63,211, CFO Brooke Carillo acquired 26,065, and Director Greg Kubicek bought 50,000. The purchases increased their holdings by roughly 17% to 65% and may signal that management and the board consider RWT undervalued. Redwood Trust insider purchase filing
- Positive Sentiment: Redwood completed a private offering of $205 million in 7.00% convertible notes and a related restructuring. The proceeds should improve liquidity and financial flexibility for its residential mortgage-credit business. Redwood Trust convertible notes offering
- Neutral Sentiment: Redwood declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and an indicated yield of about 18%. The high yield may attract income-oriented investors, but the reported negative payout ratio highlights concerns about dividend sustainability.
- Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RWT from $5.50 to $4.75 while retaining an “outperform” rating. The reduced target signals weaker expectations and may pressure sentiment, although it remains above recent trading levels. Keefe, Bruyette & Woods lowers Redwood Trust price target
- Negative Sentiment: The convertible financing could eventually dilute existing shareholders if the notes convert into equity. Redwood’s latest results also showed revenue of $56.01 million versus an $89.45 million consensus estimate, despite adjusted earnings modestly exceeding expectations.
Analysts Set New Price Targets
RWT has been the topic of several analyst reports. Wells Fargo & Company decreased their target price on shares of Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 29th. Zacks Research lowered shares of Redwood Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 21st. UBS Group decreased their price objective on shares of Redwood Trust from $7.00 to $6.50 and set a “buy” rating on the stock in a research report on Friday, August 21st. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Redwood Trust from $5.50 to $4.75 and set an “outperform” rating for the company in a report on Monday. Six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $5.84.
Read Our Latest Analysis on Redwood Trust
Institutional Trading of Redwood Trust
Several large investors have recently bought and sold shares of the company. Bank of New York Mellon Corp raised its position in shares of Redwood Trust by 0.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock worth $3,385,000 after acquiring an additional 2,627 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Redwood Trust by 66.4% during the first quarter. Bank of America Corp DE now owns 395,286 shares of the real estate investment trust’s stock valued at $2,218,000 after purchasing an additional 157,795 shares in the last quarter. Quantinno Capital Management LP grew its stake in Redwood Trust by 22.7% in the first quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock worth $2,098,000 after purchasing an additional 69,173 shares during the period. Legal & General Group Plc purchased a new stake in Redwood Trust in the second quarter worth $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Redwood Trust by 7,932.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 265,059 shares of the real estate investment trust’s stock worth $1,256,000 after purchasing an additional 261,759 shares in the last quarter. 74.34% of the stock is owned by institutional investors.
About Redwood Trust
Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.
Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.
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