Redwood Trust (RWT) Stock Rating Lowered by Zacks Investment Research

Redwood Trust (NYSE:RWT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “REDWOOD TRUST INC. is a self-advised and self-managed real estate investment trust. It specializes in acquiring and managing real estate mortgage assets which may be acquired as whole loans or as mortgage securities reperesenting interest in or obligations backed by pools of mortgage loans. “

Several other brokerages also recently issued reports on RWT. JMP Securities upgraded shares of Redwood Trust from a “market perform” rating to an “outperform” rating and set a $17.00 price target on the stock in a research report on Monday, March 4th. Credit Suisse Group assumed coverage on shares of Redwood Trust in a research report on Tuesday, February 5th. They set an “outperform” rating and a $18.00 price target on the stock. Finally, Nomura assumed coverage on shares of Redwood Trust in a research report on Wednesday, March 27th. They set a “buy” rating and a $17.50 price target on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $17.83.

RWT opened at $15.98 on Wednesday. The company has a debt-to-equity ratio of 5.30, a quick ratio of 4.25 and a current ratio of 4.25. Redwood Trust has a twelve month low of $14.29 and a twelve month high of $17.50. The stock has a market capitalization of $1.56 billion, a PE ratio of 8.98 and a beta of 0.65.

Redwood Trust (NYSE:RWT) last posted 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). Redwood Trust had a return on equity of 10.86% and a net margin of 24.71%. The firm had revenue of $32.00 million during the quarter, compared to the consensus estimate of $44.20 million. During the same period in the previous year, the company posted $0.60 EPS. The firm’s revenue for the quarter was down 8.6% compared to the same quarter last year. Analysts expect that Redwood Trust will post 1.48 earnings per share for the current year.

In other Redwood Trust news, Director Mariann H. Byerwalter sold 9,778 shares of the company’s stock in a transaction dated Wednesday, March 6th. The shares were sold at an average price of $15.81, for a total transaction of $154,590.18. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Corporate insiders own 2.50% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in RWT. Truvestments Capital LLC acquired a new position in Redwood Trust during the 1st quarter valued at about $28,000. Oregon Public Employees Retirement Fund acquired a new position in Redwood Trust during the 4th quarter valued at about $32,000. Legacy Bridge LLC acquired a new position in Redwood Trust during the 1st quarter valued at about $32,000. Bank of Montreal Can lifted its position in Redwood Trust by 195.1% during the 4th quarter. Bank of Montreal Can now owns 2,526 shares of the real estate investment trust’s stock valued at $38,000 after purchasing an additional 1,670 shares during the period. Finally, Cutler Group LP acquired a new position in Redwood Trust during the 4th quarter valued at about $49,000. Institutional investors own 95.02% of the company’s stock.

Redwood Trust Company Profile

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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