JMP Securities Issues Pessimistic Forecast for Redwood Trust (NYSE:RWT) Stock Price

Redwood Trust (NYSE:RWT) had its price target lowered by JMP Securities from $9.00 to $8.00 in a report published on Thursday morning,Benzinga reports. JMP Securities currently has a market outperform rating on the real estate investment trust’s stock.

RWT has been the topic of several other reports. JPMorgan Chase & Co. dropped their price target on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research report on Tuesday. StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Monday, November 11th. Five equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Redwood Trust presently has an average rating of “Moderate Buy” and a consensus target price of $7.84.

Redwood Trust Price Performance

NYSE RWT opened at $6.31 on Thursday. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15. The company has a fifty day simple moving average of $6.77 and a 200 day simple moving average of $7.17. The company has a current ratio of 44.36, a quick ratio of 44.36 and a debt-to-equity ratio of 14.55. The company has a market cap of $835.54 million, a P/E ratio of 11.46 and a beta of 1.57.

Redwood Trust (NYSE:RWT) last released its quarterly earnings results on Wednesday, October 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.04. Redwood Trust had a net margin of 9.35% and a return on equity of 6.01%. During the same quarter in the previous year, the business earned $0.09 earnings per share. On average, sell-side analysts predict that Redwood Trust will post 0.57 EPS for the current year.

Redwood Trust Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Monday, December 23rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 11.42%. The ex-dividend date was Monday, December 23rd. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s payout ratio is 130.91%.

Hedge Funds Weigh In On Redwood Trust

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brown Brothers Harriman & Co. acquired a new position in Redwood Trust in the third quarter worth about $39,000. GAMMA Investing LLC raised its holdings in shares of Redwood Trust by 65.4% in the 3rd quarter. GAMMA Investing LLC now owns 5,169 shares of the real estate investment trust’s stock worth $40,000 after buying an additional 2,043 shares in the last quarter. KBC Group NV raised its holdings in shares of Redwood Trust by 86.7% in the 4th quarter. KBC Group NV now owns 10,313 shares of the real estate investment trust’s stock worth $67,000 after buying an additional 4,788 shares in the last quarter. Algert Global LLC bought a new position in shares of Redwood Trust during the 2nd quarter worth approximately $86,000. Finally, Creative Planning acquired a new stake in Redwood Trust in the 3rd quarter valued at $91,000. 74.34% of the stock is owned by institutional investors.

About Redwood Trust

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.