Redwood Trust (NYSE:RWT) Sees Strong Trading Volume After Dividend Announcement

Redwood Trust, Inc. (NYSE:RWT) shares saw unusually-strong trading volume on Friday after the company announced a dividend. Approximately 24,416 shares were traded during mid-day trading, a decline of 98% from the previous session’s volume of 1,125,940 shares.The stock last traded at $11.78 and had previously closed at $11.72.

The newly announced dividend which will be paid on Wednesday, June 30th. Investors of record on Wednesday, June 23rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 6.11%. This is a positive change from Redwood Trust’s previous quarterly dividend of $0.16. Redwood Trust’s dividend payout ratio (DPR) is presently 1,600.00%.

Several research analysts recently issued reports on RWT shares. Raymond James increased their price target on shares of Redwood Trust from $13.50 to $14.50 and gave the stock a “strong-buy” rating in a research note on Friday, April 30th. Credit Suisse Group increased their price objective on shares of Redwood Trust from $10.50 to $12.00 and gave the company an “outperform” rating in a research report on Tuesday, March 16th. Zacks Investment Research raised shares of Redwood Trust from a “hold” rating to a “strong-buy” rating and set a $13.00 price objective on the stock in a research report on Thursday, May 6th. Finally, TheStreet raised shares of Redwood Trust from a “d” rating to a “c” rating in a research report on Thursday, April 29th. One equities research analyst has rated the stock with a hold rating, five have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $11.19.

The company’s fifty day moving average price is $10.86. The company has a debt-to-equity ratio of 6.67, a quick ratio of 6.60 and a current ratio of 6.60. The company has a market capitalization of $1.33 billion, a PE ratio of 3.71 and a beta of 0.96.

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Principal Financial Group Inc. boosted its holdings in shares of Redwood Trust by 1.5% in the first quarter. Principal Financial Group Inc. now owns 781,843 shares of the real estate investment trust’s stock worth $8,139,000 after buying an additional 11,871 shares during the last quarter. Teachers Retirement System of The State of Kentucky boosted its holdings in shares of Redwood Trust by 21.2% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 31,500 shares of the real estate investment trust’s stock worth $328,000 after buying an additional 5,500 shares during the last quarter. Amundi Asset Management US Inc. boosted its holdings in shares of Redwood Trust by 13.4% in the first quarter. Amundi Asset Management US Inc. now owns 2,588,749 shares of the real estate investment trust’s stock worth $26,950,000 after buying an additional 305,805 shares during the last quarter. Schonfeld Strategic Advisors LLC boosted its holdings in shares of Redwood Trust by 39.1% in the first quarter. Schonfeld Strategic Advisors LLC now owns 16,000 shares of the real estate investment trust’s stock worth $167,000 after buying an additional 4,500 shares during the last quarter. Finally, Point72 Hong Kong Ltd boosted its holdings in shares of Redwood Trust by 80.4% in the first quarter. Point72 Hong Kong Ltd now owns 10,788 shares of the real estate investment trust’s stock worth $112,000 after buying an additional 4,807 shares during the last quarter. 72.30% of the stock is currently owned by institutional investors.

About Redwood Trust (NYSE:RWT)

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Lending, Business Purpose Lending, and Third-Party Investments. The Residential Lending segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.

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