Zacks Research Upgrades Redwood Trust (NYSE:RWT) to Hold

Redwood Trust (NYSE:RWTGet Free Report) was upgraded by equities researchers at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other equities research analysts also recently weighed in on the stock. Citizens Jmp lowered their price objective on shares of 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. Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a research report on Wednesday, June 24th. UBS Group reduced their price objective on Redwood Trust from $7.00 to $6.50 and set a “buy” rating for the company in a research report on Friday, August 21st. Piper Sandler lowered their price objective on Redwood Trust from $6.50 to $5.50 and set a “neutral” rating for the company in a research note on Thursday, July 2nd. Finally, JPMorgan Chase & Co. dropped their target price on Redwood Trust from $6.50 to $6.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. Six investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $5.84.

Get Our Latest Research Report on Redwood Trust

Redwood Trust Stock Performance

Redwood Trust stock opened at $3.90 on Tuesday. The company has a market cap of $490.51 million, a PE ratio of -97.60 and a beta of 1.37. The company has a fifty day moving average price of $4.66 and a two-hundred day moving average price of $5.17. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. Redwood Trust has a 12 month low of $3.22 and a 12 month high of $6.97.

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

Insiders Place Their Bets

In other Redwood Trust news, Director Greg H. Kubicek acquired 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average cost of $3.85 per share, with a total value of $192,500.00. Following the acquisition, the director directly owned 127,185 shares of the company’s stock, valued at $489,662.25. This represents a 64.78% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Christopher J. Abate bought 100,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average price of $3.84 per share, for a total transaction of $384,000.00. Following the completion of the transaction, the chief executive officer owned 679,283 shares in the company, valued at $2,608,446.72. This trade represents a 17.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders purchased 239,276 shares of company stock worth $928,430. 3.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Bank of New York Mellon Corp raised its stake in shares of Redwood Trust by 0.4% during 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 purchasing an additional 2,627 shares in the last quarter. Bank of America Corp DE bought a new position in Redwood Trust in the 2nd quarter valued at about $2,032,000. Quantinno Capital Management LP increased its stake in Redwood Trust by 22.7% during 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 buying an additional 69,173 shares during the period. Legal & General Group Plc acquired a new position in Redwood Trust during the 2nd quarter valued at about $1,349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of 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 buying an additional 261,759 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

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.

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