Piper Sandler Increases Redwood Trust (NYSE:RWT) Price Target to $7.50

Redwood Trust (NYSE:RWT) had its price target hoisted by Piper Sandler from $6.50 to $7.50 in a report released on Monday, Benzinga reports. Piper Sandler currently has a neutral rating on the real estate investment trust’s stock.

A number of other brokerages have also recently commented on RWT. Keefe, Bruyette & Woods decreased their price target on Redwood Trust from $7.75 to $7.25 and set an outperform rating on the stock in a research note on Wednesday, April 10th. JMP Securities increased their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a market outperform rating in a research note on Friday, July 19th. JPMorgan Chase & Co. upped their price target on Redwood Trust from $7.00 to $7.50 and gave the stock an overweight rating in a research note on Tuesday, July 16th. Finally, Wedbush raised their price objective on shares of Redwood Trust from $6.50 to $7.00 and gave the company a neutral rating in a research note on Friday, August 2nd. Four equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Redwood Trust presently has an average rating of Moderate Buy and an average price target of $7.81.

Redwood Trust Price Performance

RWT stock opened at $6.96 on Monday. The firm has a 50 day moving average of $6.76 and a 200-day moving average of $6.44. The firm has a market capitalization of $919.78 million, a P/E ratio of 99.43 and a beta of 1.58. The company has a current ratio of 9.09, a quick ratio of 9.09 and a debt-to-equity ratio of 12.26. Redwood Trust has a 12 month low of $5.45 and a 12 month high of $8.30.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings results on Thursday, August 1st. The real estate investment trust reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a net margin of 5.94% and a return on equity of 4.86%. During the same period last year, the business posted $0.14 EPS. As a group, sell-side analysts predict that Redwood Trust will post 0.49 earnings per share for the current fiscal year.

Redwood Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 21st were given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 9.20%. The ex-dividend date was Friday, June 21st. Redwood Trust’s dividend payout ratio (DPR) is presently 914.29%.

Insider Transactions at Redwood Trust

In other Redwood Trust news, CFO Brooke Carillo bought 15,000 shares of the business’s stock in a transaction that occurred on Thursday, May 30th. The stock was bought at an average cost of $6.25 per share, for a total transaction of $93,750.00. Following the completion of the transaction, the chief financial officer now owns 56,772 shares of the company’s stock, valued at approximately $354,825. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On Redwood Trust

Several hedge funds and other institutional investors have recently modified their holdings of the stock. SG Americas Securities LLC grew its holdings in Redwood Trust by 25.9% during the fourth quarter. SG Americas Securities LLC now owns 17,807 shares of the real estate investment trust’s stock valued at $132,000 after purchasing an additional 3,662 shares during the period. State of Alaska Department of Revenue increased its holdings in Redwood Trust by 2.4% in the 4th quarter. State of Alaska Department of Revenue now owns 72,984 shares of the real estate investment trust’s stock worth $540,000 after acquiring an additional 1,715 shares in the last quarter. International Assets Investment Management LLC raised its stake in Redwood Trust by 641.0% during the 4th quarter. International Assets Investment Management LLC now owns 3,705 shares of the real estate investment trust’s stock worth $27,000 after acquiring an additional 3,205 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in Redwood Trust by 1,944.1% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 976,088 shares of the real estate investment trust’s stock worth $7,233,000 after acquiring an additional 928,337 shares during the period. Finally, Ceredex Value Advisors LLC purchased a new position in shares of Redwood Trust during the 4th quarter valued at $4,502,000. 74.34% of the stock is currently owned by hedge funds and other 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.