Redwood Trust (NYSE:RWT) Issues Earnings Results

Redwood Trust (NYSE:RWT) announced its earnings results on Wednesday, May 8th. The real estate investment trust reported $0.36 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.02), RTT News reports. The business had revenue of $32.00 million for the quarter, compared to analyst estimates of $44.20 million. Redwood Trust had a return on equity of 10.86% and a net margin of 24.71%. The company’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.60 earnings per share.

Shares of NYSE RWT traded down $0.08 on Friday, hitting $15.90. The company had a trading volume of 12,339 shares, compared to its average volume of 489,881. Redwood Trust has a 12-month low of $14.29 and a 12-month high of $17.50. The company has a debt-to-equity ratio of 5.30, a current ratio of 4.25 and a quick ratio of 4.25. The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of 8.87 and a beta of 0.65.

The company also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 7.55%. The ex-dividend date is Thursday, June 13th. Redwood Trust’s dividend payout ratio (DPR) is presently 67.42%.

A number of research firms have recently weighed in on RWT. Zacks Investment Research cut Redwood Trust from a “hold” rating to a “sell” rating in a report on Wednesday. Nomura initiated coverage on Redwood Trust in a research note on Wednesday, March 27th. They issued a “buy” rating and a $17.50 target price on the stock. Credit Suisse Group initiated coverage on Redwood Trust in a research note on Tuesday, February 5th. They issued an “outperform” rating and a $18.00 price target on the stock. Finally, JMP Securities upgraded Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 price target on the stock in a research note on Monday, March 4th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. Redwood Trust has an average rating of “Hold” and a consensus target price of $17.83.

In other news, Director Mariann H. Byerwalter sold 9,778 shares of the company’s stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $15.81, for a total value of $154,590.18. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.50% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in RWT. Cedar Wealth Management LLC lifted its stake in shares of Redwood Trust by 112.5% in the fourth quarter. Cedar Wealth Management LLC now owns 1,700 shares of the real estate investment trust’s stock worth $26,000 after acquiring an additional 900 shares in the last quarter. Truvestments Capital LLC acquired a new position in shares of Redwood Trust in the first quarter worth about $28,000. Oregon Public Employees Retirement Fund acquired a new position in shares of Redwood Trust in the fourth quarter worth about $32,000. Legacy Bridge LLC acquired a new position in shares of Redwood Trust in the first quarter worth about $32,000. Finally, Bank of Montreal Can lifted its stake in shares of Redwood Trust by 195.1% in the fourth quarter. Bank of Montreal Can now owns 2,526 shares of the real estate investment trust’s stock worth $38,000 after acquiring an additional 1,670 shares in the last quarter. Institutional investors and hedge funds own 95.02% of the company’s stock.

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About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.

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Earnings History for Redwood Trust (NYSE:RWT)

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