Redwood Trust (NYSE:RWT) Posts Quarterly Earnings Results, Misses Estimates By $0.23 EPS

Posted by George Bondi on Nov 3rd, 2026

Redwood Trust (NYSE:RWT – Get Free Report) posted its quarterly earnings data on Tuesday. The real estate investment trust reported ($0.02) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.23), FiscalAI reports. The business had revenue of $12.90 million during the quarter, compared to analysts’ expectations of $85.52 million. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.

Redwood Trust Stock Performance

NYSE RWT traded down $0.14 on Tuesday, reaching $3.10. 3,132,596 shares of the stock were exchanged, compared to its average volume of 2,633,546. The company has a current ratio of 67.49, a quick ratio of 67.49 and a debt-to-equity ratio of 31.69. Redwood Trust has a one year low of $2.88 and a one year high of $6.97. The firm has a market capitalization of $388.76 million, a PE ratio of -77.36 and a beta of 1.45. The company’s 50-day simple moving average is $3.71 and its two-hundred day simple moving average is $4.99.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd were paid a dividend of $0.18 per share. The ex-dividend date was Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 23.3%. Redwood Trust’s dividend payout ratio (DPR) is presently -1,800.00%.

Insider Activity

In other news, CEO Christopher Abate purchased 100,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was acquired at an average cost of $3.84 per share, for a total transaction of $384,000.00. Following the completion of the transaction, the chief executive officer directly owned 679,283 shares in the company, valued at $2,608,446.72. This trade represents a 17.26% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Greg Kubicek acquired 50,000 shares of Redwood Trust stock in a transaction dated Tuesday, September 15th. The stock was purchased at an average cost of $3.85 per share, with a total value of $192,500.00. Following the completion of the purchase, the director owned 127,185 shares of the company’s stock, valued at approximately $489,662.25. This represents a 64.78% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have acquired 244,171 shares of company stock valued at $948,402. Company insiders own 3.30% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Piper Sandler reduced their target price on shares of Redwood Trust from $5.25 to $3.75 and set a “neutral” rating for the company in a report on Friday, October 9th. JPMorgan Chase & Co. reduced their price objective on Redwood Trust from $6.50 to $6.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Zacks Research cut Redwood Trust from a “hold” rating to a “strong sell” rating in a report on Wednesday, October 14th. Citigroup reiterated a “market outperform” rating on shares of Redwood Trust in a research report on Thursday, October 15th. Finally, BTIG Research cut their price target on Redwood Trust from $6.00 to $5.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Seven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $5.25.

View Our Latest Research Report on Redwood Trust

About Redwood Trust

(Get Free Report)

Redwood Trust, Inc is a specialty finance company and real estate investment trust headquartered in Mill Valley, California. Founded in 1994 and traded on the New York Stock Exchange under the symbol RWT, the company focuses on investing in and financing residential real estate credit.

Redwood Trust’s activities include acquiring, originating, securitizing and managing residential mortgage loans and related assets. Its portfolio has historically included jumbo and other non-agency residential mortgages, mortgage-backed securities, mortgage servicing rights and other residential credit investments.