Redwood Trust (NYSE:RWT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday, Zacks.com reports.
According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “
Several other research analysts have also recently commented on RWT. Nomura began coverage on Redwood Trust in a research note on Wednesday, March 27th. They set a “buy” rating and a $17.50 target price for the company. JMP Securities raised Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 target price for the company in a research note on Monday, March 4th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Redwood Trust currently has an average rating of “Buy” and an average price target of $17.83.
RWT opened at $15.91 on Wednesday. Redwood Trust has a 12 month low of $14.29 and a 12 month high of $17.50. The firm has a market cap of $1.56 billion, a P/E ratio of 8.94 and a beta of 0.66. The company has a quick ratio of 4.25, a current ratio of 4.25 and a debt-to-equity ratio of 5.30.
Redwood Trust (NYSE:RWT) last released its earnings results on Wednesday, May 8th. The real estate investment trust reported $0.36 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.02). Redwood Trust had a return on equity of 10.86% and a net margin of 24.71%. The company had revenue of $32.00 million for the quarter, compared to analyst estimates of $44.20 million. During the same period in the previous year, the firm earned $0.60 earnings per share. The company’s revenue for the quarter was down 8.6% compared to the same quarter last year. As a group, research analysts forecast that Redwood Trust will post 1.48 EPS for the current fiscal year.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in RWT. BlackRock Inc. grew its stake in Redwood Trust by 12.2% during the 1st quarter. BlackRock Inc. now owns 16,384,220 shares of the real estate investment trust’s stock worth $264,604,000 after purchasing an additional 1,778,088 shares in the last quarter. Norges Bank purchased a new stake in Redwood Trust during the 4th quarter worth about $18,679,000. Shoals Capital Management LP purchased a new stake in Redwood Trust during the 4th quarter worth about $18,461,000. Boston Partners purchased a new stake in Redwood Trust during the 1st quarter worth about $19,296,000. Finally, Blackstone Group L.P. purchased a new stake in Redwood Trust during the 1st quarter worth about $16,271,000. 95.02% of the stock is owned by hedge funds and other institutional investors.
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 two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.
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