Redwood Trust (NYSE:RWT) Rating Lowered to Sell at 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 Friday, 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. “

A number of other brokerages also recently issued reports on RWT. Piper Sandler raised their price target on shares of Redwood Trust from $5.50 to $7.50 and gave the company a “neutral” rating in a report on Friday, June 26th. Credit Suisse Group raised their price target on shares of Redwood Trust from $6.50 to $8.00 and gave the company an “outperform” rating in a report on Monday, June 8th. Raymond James raised their price objective on shares of Redwood Trust from $7.00 to $8.00 and gave the stock an “outperform” rating in a report on Friday, June 12th. ValuEngine raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, May 11th. Finally, JMP Securities dropped their price objective on shares of Redwood Trust from $10.00 to $5.00 and set a “market outperform” rating on the stock in a report on Friday, April 3rd. One analyst has rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus target price of $9.38.

Shares of NYSE RWT traded up $0.20 during trading on Friday, reaching $7.13. 2,637,458 shares of the company traded hands, compared to its average volume of 1,724,028. The firm has a 50 day simple moving average of $6.76 and a 200-day simple moving average of $9.24. The company has a quick ratio of 4.36, a current ratio of 4.36 and a debt-to-equity ratio of 12.29. The stock has a market capitalization of $818.74 million, a PE ratio of -1.08 and a beta of 1.20. Redwood Trust has a 52-week low of $2.14 and a 52-week high of $18.01.

Redwood Trust (NYSE:RWT) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $1.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.67. The firm had revenue of $27.00 million for the quarter, compared to the consensus estimate of $36.20 million. Redwood Trust had a negative net margin of 103.58% and a positive return on equity of 3.11%. During the same quarter last year, the firm posted $0.39 EPS. As a group, research analysts predict that Redwood Trust will post 0.06 EPS for the current year.

In other news, Director Fred Matera purchased 13,000 shares of the stock in a transaction on Friday, May 15th. The shares were acquired at an average price of $3.80 per share, with a total value of $49,400.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.47% of the stock is owned by insiders.

Large investors have recently modified their holdings of the business. Verus Capital Partners LLC lifted its stake in Redwood Trust by 89.2% in the first quarter. Verus Capital Partners LLC now owns 5,053 shares of the real estate investment trust’s stock worth $26,000 after acquiring an additional 2,382 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Redwood Trust by 60.4% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,461 shares of the real estate investment trust’s stock worth $48,000 after purchasing an additional 3,563 shares in the last quarter. Tower Research Capital LLC TRC bought a new position in Redwood Trust in the first quarter worth about $49,000. Mount Yale Investment Advisors LLC bought a new position in Redwood Trust in the first quarter worth about $52,000. Finally, Atom Investors LP bought a new position in Redwood Trust in the first quarter worth about $62,000. 87.36% of the stock is currently owned by institutional investors and hedge funds.

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.

See Also: What is a good rate of return for a mutual fund?

Get a free copy of the Zacks research report on Redwood Trust (RWT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Redwood Trust (NYSE:RWT)

Receive News & Ratings for Redwood Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Redwood Trust and related companies with MarketBeat.com's FREE daily email newsletter.