Redwood Trust (NYSE:RWT) Downgraded to “Sell” Rating by StockNews.com

StockNews.com lowered shares of Redwood Trust (NYSE:RWT) from a hold rating to a sell rating in a research report report published on Monday morning.

Several other research analysts have also recently issued reports on the company. JMP Securities reiterated a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a research report on Friday, February 14th. JPMorgan Chase & Co. decreased their price objective on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. One investment analyst has rated the stock with a sell rating, four have given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Redwood Trust presently has a consensus rating of “Hold” and a consensus target price of $7.84.

Redwood Trust Stock Up 0.7 %

Shares of Redwood Trust stock opened at $6.39 on Monday. The company has a market cap of $846.27 million, a P/E ratio of 19.35 and a beta of 1.57. The firm has a fifty day moving average of $6.52 and a two-hundred day moving average of $7.07. The company has a debt-to-equity ratio of 14.09, a quick ratio of 44.36 and a current ratio of 44.36. Redwood Trust has a one year low of $5.45 and a one year high of $8.15.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings data on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). The business had revenue of $27.60 million during the quarter, compared to analysts’ expectations of $26.00 million. Redwood Trust had a net margin of 9.35% and a return on equity of 6.91%. On average, analysts forecast that Redwood Trust will post 0.78 earnings per share for the current year.

Redwood Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.27%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.17. The ex-dividend date of this dividend was Monday, December 23rd. Redwood Trust’s dividend payout ratio (DPR) is 218.19%.

Institutional Investors Weigh In On Redwood Trust

Large investors have recently bought and sold shares of the stock. LaSalle St. Investment Advisors LLC purchased a new stake in shares of Redwood Trust in the fourth quarter valued at $37,000. Brown Brothers Harriman & Co. acquired a new stake in shares of Redwood Trust during the 3rd quarter worth about $39,000. Sovran Advisors LLC purchased a new stake in shares of Redwood Trust during the fourth quarter worth about $63,000. KBC Group NV raised its position in shares of Redwood Trust by 86.7% in the fourth quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock valued at $67,000 after buying an additional 4,788 shares during the last quarter. Finally, Zacks Investment Management acquired a new stake in Redwood Trust during the fourth quarter worth approximately $74,000. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.