Brokerages Set Redwood Trust, Inc. (NYSE:RWT) Target Price at $6.96

by · The Markets Daily

Redwood Trust, Inc. (NYSE:RWT – Get Free Report) has been assigned a consensus recommendation of “Moderate Buy” from the nine brokerages that are presently covering the company, MarketBeat reports. One analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $6.9583.

A number of brokerages have weighed in on RWT. Wall Street Zen upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. JonesTrading reaffirmed a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a research report on Tuesday, March 3rd. Keefe, Bruyette & Woods raised their price target on shares of Redwood Trust from $5.75 to $7.00 and gave the stock a “market perform” rating in a research report on Wednesday, February 18th. JPMorgan Chase & Co. upgraded shares of Redwood Trust from a “neutral” rating to an “overweight” rating and set a $6.00 price target for the company in a research note on Friday, January 23rd. Finally, Zacks Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th.

Get Our Latest Stock Analysis on Redwood Trust

Redwood Trust Stock Performance

Shares of RWT stock opened at $6.10 on Friday. Redwood Trust has a 12 month low of $4.68 and a 12 month high of $6.97. The company has a debt-to-equity ratio of 24.34, a current ratio of 55.15 and a quick ratio of 55.15. The firm has a market capitalization of $761.81 million, a P/E ratio of -9.99 and a beta of 1.55. The company’s fifty day moving average price is $5.86 and its two-hundred day moving average price is $5.73.

Redwood Trust (NYSE:RWT – Get Free Report) last announced its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. The business had revenue of $86.86 million for the quarter, compared to analyst estimates of $24.88 million. On average, research analysts anticipate that Redwood Trust will post 0.78 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Redwood Trust

Several large investors have recently modified their holdings of RWT. UBS Group AG grew its stake in Redwood Trust by 521.1% in the fourth quarter. UBS Group AG now owns 3,875,226 shares of the real estate investment trust’s stock worth $21,430,000 after purchasing an additional 3,251,302 shares in the last quarter. Wellington Management Group LLP raised its stake in Redwood Trust by 10.2% during the third quarter. Wellington Management Group LLP now owns 15,020,483 shares of the real estate investment trust’s stock valued at $86,969,000 after buying an additional 1,395,675 shares in the last quarter. Evergreen Capital Management LLC lifted its holdings in Redwood Trust by 52.8% during the 4th quarter. Evergreen Capital Management LLC now owns 1,674,009 shares of the real estate investment trust’s stock worth $9,257,000 after buying an additional 578,301 shares during the last quarter. Tran Capital Management L.P. bought a new position in Redwood Trust during the 4th quarter worth approximately $2,947,000. Finally, Invesco Ltd. grew its position in shares of Redwood Trust by 25.4% in the 4th quarter. Invesco Ltd. now owns 2,551,067 shares of the real estate investment trust’s stock worth $14,107,000 after acquiring an additional 516,630 shares in the last quarter. Institutional investors own 74.34% of the company’s stock.

Redwood Trust Company Profile

(Get Free Report)

Redwood Trust, Inc (NYSE:RWT) is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company’s core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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