Redwood Trust (NYSE:RWT) Downgraded to Hold Rating by Zacks Research

Zacks Research lowered shares of Redwood Trust (NYSE:RWT) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

Several other research firms have also commented on RWT. Keefe, Bruyette & Woods increased their price objective on shares of Redwood Trust from $5.75 to $7.00 and gave the company a “market perform” rating in a research note on Wednesday, February 18th. Wall Street Zen lowered shares of Redwood Trust from a “hold” rating to a “sell” rating in a research note on Monday, April 6th. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price objective for the company in a research note on Friday, January 23rd. JonesTrading reiterated a “buy” rating and issued a $6.25 price objective on shares of Redwood Trust in a research note on Tuesday, March 3rd. Finally, Citigroup reiterated a “market perform” rating on shares of Redwood Trust in a research note on Wednesday, February 18th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $6.82.

Redwood Trust Stock Up 0.2%

NYSE:RWT traded up $0.01 on Monday, hitting $6.06. The stock had a trading volume of 71,495 shares, compared to its average volume of 1,596,441. The company has a debt-to-equity ratio of 24.34, a quick ratio of 55.15 and a current ratio of 55.15. The stock has a market cap of $757.88 million, a P/E ratio of -9.93 and a beta of 1.52. Redwood Trust has a 1 year low of $5.00 and a 1 year high of $6.97. The firm’s fifty day simple moving average is $5.87 and its two-hundred day simple moving average is $5.66.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $140.33 million during the quarter, compared to analysts’ expectations of $24.88 million. Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. Analysts predict that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 24th were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.9%. The ex-dividend date of this dividend was Tuesday, March 24th. Redwood Trust’s payout ratio is currently -118.03%.

Institutional Trading of Redwood Trust

A number of hedge funds have recently made changes to their positions in RWT. UBS Group AG lifted its holdings in shares of Redwood Trust by 521.1% during the 4th quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock worth $21,430,000 after acquiring an additional 3,251,302 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Redwood Trust by 10.2% during the 3rd quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock worth $86,969,000 after acquiring an additional 1,395,675 shares during the last quarter. Evergreen Capital Management LLC lifted its holdings in shares of Redwood Trust by 52.8% during the 4th quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust’s stock worth $9,257,000 after acquiring an additional 578,301 shares during the last quarter. Tran Capital Management L.P. bought a new stake in shares of Redwood Trust during the 4th quarter worth $2,947,000. Finally, Invesco Ltd. lifted its holdings in shares of Redwood Trust by 25.4% during the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock worth $14,107,000 after acquiring an additional 516,630 shares during the last quarter. 74.34% of the stock is owned by institutional investors.

Redwood Trust Company Profile

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.