Redwood Trust (NYSE:RWT) Shares Gap Down – Should You Sell?

26 Mar 2026, 11:25 by Mitch Edgeman · The Markets Daily

Redwood Trust, Inc. (NYSE:RWT – Get Free Report)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $5.49, but opened at $5.24. Redwood Trust shares last traded at $5.2750, with a volume of 308,553 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on RWT shares. Wall Street Zen downgraded Redwood Trust from a “hold” rating to a “sell” rating in a research report on Saturday, March 21st. Keefe, Bruyette & Woods boosted their price objective on Redwood Trust from $5.75 to $7.00 and gave the stock a “market perform” rating in a research report on Wednesday, February 18th. Citigroup restated a “market perform” rating on shares of Redwood Trust in a research note on Wednesday, February 18th. JonesTrading reaffirmed a “buy” rating and issued a $6.25 target price on shares of Redwood Trust in a report on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Redwood Trust in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $6.96.

Get Our Latest Analysis on RWT

Redwood Trust Price Performance

The company has a quick ratio of 55.15, a current ratio of 55.15 and a debt-to-equity ratio of 24.34. The stock’s 50-day moving average price is $5.88 and its 200 day moving average price is $5.70. The firm has a market cap of $683.07 million, a price-to-earnings ratio of -8.96 and a beta of 1.55.

Redwood Trust (NYSE:RWT – Get Free Report) last released its earnings results on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The firm had revenue of $140.33 million for the quarter, compared to analyst estimates of $24.88 million. Redwood Trust had a positive return on equity of 12.00% and a negative net margin of 5.93%. Equities research analysts predict that Redwood Trust, Inc. will post 0.78 earnings per share for the current year.

Redwood Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 24th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 13.2%. The ex-dividend date of this dividend is Tuesday, March 24th. Redwood Trust’s dividend payout ratio (DPR) is currently -118.03%.

Institutional Inflows and Outflows

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

About Redwood Trust

(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.