Redwood Trust (NYSE:RWT) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Redwood Trust (NYSE:RWT) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.03), Zacks reports. Redwood Trust had a return on equity of 6.01% and a net margin of 9.35%. The business had revenue of $27.60 million for the quarter, compared to analyst estimates of $26.00 million.

Redwood Trust Trading Down 1.5 %

Shares of Redwood Trust stock traded down $0.10 during trading on Friday, hitting $6.37. 2,810,329 shares of the company were exchanged, compared to its average volume of 764,295. The company has a debt-to-equity ratio of 14.55, a current ratio of 44.36 and a quick ratio of 44.36. The firm’s fifty day moving average price is $6.58 and its 200 day moving average price is $7.10. Redwood Trust has a 1-year low of $5.45 and a 1-year high of $8.15. The firm has a market capitalization of $843.49 million, a P/E ratio of 11.57 and a beta of 1.57.

Redwood Trust Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were given a dividend of $0.18 per share. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 11.31%. The ex-dividend date of this dividend was Monday, December 23rd. Redwood Trust’s payout ratio is presently 130.91%.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th. JPMorgan Chase & Co. decreased their price objective on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research note on Tuesday, January 21st. Finally, JMP Securities reiterated a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a report on Friday. Five equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Redwood Trust has an average rating of “Moderate Buy” and an average price target of $7.84.

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.