Keefe, Bruyette & Woods Cuts Redwood Trust (NYSE:RWT) Price Target to $4.75

Posted by Francis Steltz on Sep 17th, 2026

Redwood Trust (NYSE:RWT – Free Report) had its target price decreased by Keefe, Bruyette & Woods from $5.50 to $4.75 in a research report report published on Monday,Benzinga reports. Keefe, Bruyette & Woods currently has an outperform rating on the real estate investment trust’s stock.

Several other equities analysts have also commented on RWT. UBS Group dropped their target price on Redwood Trust from $7.00 to $6.50 and set a “buy” rating on the stock in a report on Friday, August 21st. Zacks Research downgraded Redwood Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 21st. Citizens Jmp lowered their price objective on Redwood Trust from $7.00 to $6.00 and set a “market outperform” rating for the company in a research report on Wednesday, July 8th. 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. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Redwood Trust in a research note on Wednesday, June 24th. Six analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $5.84.

Get Our Latest Stock Analysis on RWT

Redwood Trust Trading Down 0.1%

NYSE RWT opened at $3.90 on Monday. 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 has a 52 week low of $3.22 and a 52 week high of $6.97. The stock has a market capitalization of $490.51 million, a PE ratio of -97.60 and a beta of 1.37. The firm has a 50 day moving average of $4.66 and a two-hundred day moving average of $5.17.

Redwood Trust (NYSE:RWT – Get Free Report) last announced 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 net margin of 0.42% and a return on equity of 16.02%. The company had revenue of $56.01 million for the quarter, compared to the consensus estimate of $89.45 million. As a group, research analysts expect that Redwood Trust will post 1.03 EPS 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. Investors of record on Wednesday, September 23rd will be given a $0.18 dividend. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 18.4%. Redwood Trust’s payout ratio is -1,800.00%.

Insider Activity at Redwood Trust

In related news, President Dashiell Robinson acquired 63,211 shares of the firm’s stock in a transaction on Wednesday, September 16th. The stock was bought at an average price of $3.98 per share, for a total transaction of $251,579.78. Following the completion of the purchase, the president directly owned 395,050 shares of the company’s stock, valued at approximately $1,572,299. The trade was a 19.05% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Brooke Carillo acquired 26,065 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were purchased at an average cost of $3.85 per share, for a total transaction of $100,350.25. Following the acquisition, the chief financial officer owned 140,481 shares of the company’s stock, valued at approximately $540,851.85. The trade was a 22.78% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 239,276 shares of company stock valued at $928,430 in the last ninety days. 3.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp boosted its holdings in shares of Redwood Trust by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 714,220 shares of the real estate investment trust’s stock valued at $3,385,000 after acquiring an additional 2,627 shares during the period. Bank of America Corp DE acquired a new position in shares of Redwood Trust in the 2nd quarter valued at $2,032,000. Quantinno Capital Management LP raised its position in Redwood Trust by 22.7% in the 1st quarter. Quantinno Capital Management LP now owns 373,932 shares of the real estate investment trust’s stock valued at $2,098,000 after purchasing an additional 69,173 shares during the last quarter. Legal & General Group Plc purchased a new stake in Redwood Trust in the 2nd quarter valued at $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Redwood Trust by 7,932.1% during the 2nd 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 during the period. Institutional investors and hedge funds own 74.34% of the company’s stock.

Key Stories Impacting Redwood Trust

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.

Redwood Trust Company Profile

(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.