Q3 2024 EPS Estimates for Redwood Trust, Inc. Cut by Wedbush (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) – Investment analysts at Wedbush dropped their Q3 2024 earnings per share estimates for shares of Redwood Trust in a report issued on Friday, August 2nd. Wedbush analyst J. Mccanless now forecasts that the real estate investment trust will post earnings per share of $0.14 for the quarter, down from their previous estimate of $0.15. Wedbush has a “Neutral” rating and a $7.00 price objective on the stock. The consensus estimate for Redwood Trust’s current full-year earnings is $0.49 per share.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.12 by $0.01. Redwood Trust had a return on equity of 4.86% and a net margin of 5.94%. During the same quarter in the prior year, the company earned $0.14 EPS.

RWT has been the subject of a number of other research reports. Keefe, Bruyette & Woods decreased their target price on shares of Redwood Trust from $7.75 to $7.25 and set an “outperform” rating for the company in a research report on Wednesday, April 10th. JPMorgan Chase & Co. increased their price objective on Redwood Trust from $7.00 to $7.50 and gave the company an “overweight” rating in a report on Tuesday, July 16th. Piper Sandler raised their price objective on Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a research report on Monday. Finally, JMP Securities upped their target price on Redwood Trust from $8.00 to $8.50 and gave the company a “market outperform” rating in a research report on Friday, July 19th. Four investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $7.81.

Redwood Trust Stock Performance

RWT stock opened at $6.98 on Monday. The firm has a 50-day simple moving average of $6.73 and a two-hundred day simple moving average of $6.44. The company has a debt-to-equity ratio of 12.26, a quick ratio of 9.09 and a current ratio of 9.09. Redwood Trust has a one year low of $5.45 and a one year high of $8.30. The firm has a market cap of $922.41 million, a price-to-earnings ratio of 99.71 and a beta of 1.58.

Redwood Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 21st were paid a $0.16 dividend. The ex-dividend date of this dividend was Friday, June 21st. This represents a $0.64 dividend on an annualized basis and a yield of 9.17%. Redwood Trust’s dividend payout ratio (DPR) is 914.29%.

Insiders Place Their Bets

In other news, CFO Brooke Carillo acquired 15,000 shares of the business’s stock in a transaction dated Thursday, May 30th. The shares were acquired at an average cost of $6.25 per share, with a total value of $93,750.00. Following the completion of the acquisition, the chief financial officer now owns 56,772 shares of the company’s stock, valued at $354,825. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 2.50% of the stock is currently owned by insiders.

Institutional Trading of Redwood Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in RWT. Vanguard Group Inc. raised its holdings in shares of Redwood Trust by 19.5% during the first quarter. Vanguard Group Inc. now owns 15,504,440 shares of the real estate investment trust’s stock worth $98,763,000 after purchasing an additional 2,530,937 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of Redwood Trust by 164.4% during the 4th quarter. Wellington Management Group LLP now owns 11,314,715 shares of the real estate investment trust’s stock valued at $83,842,000 after buying an additional 7,035,524 shares during the last quarter. Clearbridge Investments LLC lifted its holdings in shares of Redwood Trust by 2.1% in the 1st quarter. Clearbridge Investments LLC now owns 1,846,227 shares of the real estate investment trust’s stock valued at $11,760,000 after buying an additional 37,514 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Redwood Trust by 7.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,798,260 shares of the real estate investment trust’s stock worth $13,325,000 after buying an additional 127,435 shares during the last quarter. Finally, Mesirow Institutional Investment Management Inc. acquired a new stake in Redwood Trust during the fourth quarter worth about $13,246,000. Institutional investors and hedge funds own 74.34% of the company’s stock.

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.