Redwood Trust (NYSE:RWT) CFO Brooke Carillo Buys 26,065 Shares

Redwood Trust, Inc. (NYSE:RWTGet Free Report) CFO Brooke Carillo acquired 26,065 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were purchased at an average cost of $3.85 per share, with a total value of $100,350.25. Following the completion of the transaction, the chief financial officer owned 140,481 shares in the company, valued at approximately $540,851.85. The trade was a 22.78% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Redwood Trust Stock Up 2.5%

Shares of NYSE RWT opened at $3.92 on Wednesday. The company has a market capitalization of $493.02 million, a price-to-earnings ratio of -98.10 and a beta of 1.37. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. The business has a 50-day moving average of $4.67 and a two-hundred day moving average of $5.19. Redwood Trust, Inc. has a 1 year low of $3.22 and a 1 year high of $6.97.

Redwood Trust (NYSE:RWTGet Free Report) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Redwood Trust had a return on equity of 16.02% and a net margin of 0.42%.The business had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. On average, analysts forecast that Redwood Trust, Inc. will post 1.03 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 18.3%. The ex-dividend date is Wednesday, September 23rd. Redwood Trust’s dividend payout ratio is currently -1,800.00%.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on RWT shares. Citizens Jmp lowered their target price on shares of Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a report on Wednesday, July 8th. Zacks Research downgraded shares of Redwood Trust from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 21st. JonesTrading cut their target price on Redwood Trust from $6.25 to $6.00 and set a “buy” rating on the stock in a research report on Tuesday, July 28th. Wells Fargo & Company reduced their target price on Redwood Trust from $7.00 to $6.00 and set an “equal weight” rating for the company in a report on Wednesday, July 29th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, June 24th. Six investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $5.84.

Read Our Latest Stock Analysis on RWT

Institutional Trading of Redwood Trust

Several hedge funds and other institutional investors have recently made changes to their positions in RWT. Clearstead Advisors LLC lifted its position in Redwood Trust by 192.5% in the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust’s stock valued at $30,000 after purchasing an additional 3,572 shares during the period. Bank of Marin purchased a new stake in Redwood Trust in the 4th quarter valued at approximately $58,000. Optiver Holding B.V. grew its holdings in Redwood Trust by 2,034.5% during the first quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust’s stock worth $60,000 after acquiring an additional 10,274 shares during the period. Quotient Wealth Partners LLC acquired a new position in shares of Redwood Trust during the 1st quarter worth $76,000. Finally, Evanson Financial LLC acquired a new position in Redwood Trust during the second quarter worth about $66,000. Hedge funds and other institutional investors own 74.34% of the company’s stock.

Key Headlines Impacting Redwood Trust

Here are the key news stories impacting Redwood Trust this week:

  • Positive Sentiment: Redwood Trust completed a private offering of $205 million of 7.00% convertible notes along with a related restructuring. The transaction should provide additional liquidity and financial flexibility, although the conversion feature could create future share dilution. Redwood Trust Completes Convertible Notes Offering and Restructuring
  • Positive Sentiment: Company insiders made substantial open-market purchases near $3.84-$3.85 per share. CEO Christopher J. Abate bought 100,000 shares, CFO Brooke Carillo purchased 26,065 shares, and Director Greg H. Kubicek acquired 50,000 shares. The purchases increased their respective holdings and may signal that management and the board view the stock as undervalued. CEO Insider Purchase
  • Neutral Sentiment: Investor Bradley L. Radoff urged Redwood Trust’s board to explore a sale of the company. A potential sale could unlock value for shareholders, but the proposal also highlights pressure on the board and does not guarantee a transaction will occur. Investor Urges Redwood Trust to Explore a Sale
  • Negative Sentiment: Keefe, Bruyette & Woods lowered its price target from $5.50 to $4.75, reflecting reduced expectations despite maintaining an “outperform” rating. The target cut may weigh on sentiment, although it still implies meaningful upside from recent trading levels. Keefe, Bruyette & Woods Price Target Update

About Redwood Trust

(Get Free Report)

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.

Further Reading

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