Key Points
- Redwood Trust President Dashiell Robinson bought 63,211 shares at an average price of $3.98, investing approximately $251,580 and increasing his ownership by 19.05% to 395,050 shares.
- The company reported quarterly EPS of $0.25, beating estimates by $0.02, but revenue of $56.01 million fell well short of the $89.45 million consensus forecast.
- Redwood declared a quarterly dividend of $0.18 per share, implying an annualized yield of about 18.4%; however, its reported negative payout ratio raises concerns about the dividend’s sustainability.
Redwood Trust, Inc. (NYSE:RWT - Get Free Report) President Dashiell Robinson purchased 63,211 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were acquired at an average cost of $3.98 per share, with a total value of $251,579.78. Following the completion of the transaction, the president owned 395,050 shares in the company, valued at $1,572,299. This trade represents a 19.05% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website.
Redwood Trust Trading Down 0.1%
NYSE:RWT opened at $3.90 on Thursday. The firm has a market capitalization of $490.51 million, a P/E ratio of -97.60 and a beta of 1.37. The company has a debt-to-equity ratio of 31.69, a current ratio of 67.49 and a quick ratio of 67.49. Redwood Trust, Inc. has a one year low of $3.22 and a one year high of $6.97. The company's 50-day simple moving average is $4.66 and its 200 day simple moving average is $5.17.
Redwood Trust (NYSE:RWT - Get Free Report) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Redwood Trust had a net margin of 0.42% and a return on equity of 16.02%. The business had revenue of $56.01 million during the quarter, compared to the consensus estimate of $89.45 million. As a group, analysts forecast that Redwood Trust, Inc. will post 1.03 EPS for the current fiscal year.
Redwood Trust Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 23rd will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 18.4%. The ex-dividend date of this dividend is Wednesday, September 23rd. Redwood Trust's payout ratio is -1,800.00%.
Institutional Trading of Redwood Trust
A number of institutional investors and hedge funds have recently modified their holdings of the business. Clearstead Advisors LLC lifted its holdings in shares of Redwood Trust by 192.5% during the fourth quarter. Clearstead Advisors LLC now owns 5,428 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 3,572 shares in the last quarter. Bank of Marin purchased a new stake in shares of Redwood Trust during the fourth quarter valued at $58,000. Optiver Holding B.V. increased its holdings in Redwood Trust by 2,034.5% in the 1st quarter. Optiver Holding B.V. now owns 10,779 shares of the real estate investment trust's stock worth $60,000 after buying an additional 10,274 shares in the last quarter. Evanson Financial LLC bought a new stake in Redwood Trust in the 2nd quarter worth about $66,000. Finally, Quotient Wealth Partners LLC purchased a new position in Redwood Trust in the 1st quarter worth about $76,000. Institutional investors own 74.34% of the company's stock.
Redwood Trust News Roundup
Here are the key news stories impacting Redwood Trust this week:
- Positive Sentiment: Redwood Trust insiders made substantial open-market purchases near $3.84–$3.98 per share. CEO Christopher Abate bought 100,000 shares, President Dashiell Robinson purchased 63,211, CFO Brooke Carillo acquired 26,065, and Director Greg Kubicek bought 50,000. The purchases increased their holdings by roughly 17% to 65% and may signal that management and the board consider RWT undervalued. Redwood Trust insider purchase filing
- Positive Sentiment: Redwood completed a private offering of $205 million in 7.00% convertible notes and a related restructuring. The proceeds should improve liquidity and financial flexibility for its residential mortgage-credit business. Redwood Trust convertible notes offering
- Neutral Sentiment: Redwood declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and an indicated yield of about 18%. The high yield may attract income-oriented investors, but the reported negative payout ratio highlights concerns about dividend sustainability.
- Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RWT from $5.50 to $4.75 while retaining an “outperform” rating. The reduced target signals weaker expectations and may pressure sentiment, although it remains above recent trading levels. Keefe, Bruyette & Woods lowers Redwood Trust price target
- Negative Sentiment: The convertible financing could eventually dilute existing shareholders if the notes convert into equity. Redwood’s latest results also showed revenue of $56.01 million versus an $89.45 million consensus estimate, despite adjusted earnings modestly exceeding expectations.
Wall Street Analyst Weigh In
Several equities analysts have recently weighed in on RWT shares. Keefe, Bruyette & Woods reduced their price target on Redwood Trust from $5.50 to $4.75 and set an "outperform" rating for the company in a report on Monday. Piper Sandler dropped their price target on shares of Redwood Trust from $6.50 to $5.50 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. JonesTrading cut their price objective on shares of Redwood Trust from $6.25 to $6.00 and set a "buy" rating on the stock in a research report on Tuesday, July 28th. Wells Fargo & Company reduced their price objective on shares of Redwood Trust from $7.00 to $6.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Redwood Trust from $6.50 to $6.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Six investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $5.84.
Read Our Latest Stock Report on Redwood Trust
Redwood Trust Company Profile
(
Get Free Report)
Redwood Trust, Inc is a real estate investment trust that focuses on residential real estate credit. The company invests in, finances and manages residential mortgage assets, including jumbo and other non-agency mortgage loans, mortgage-backed securities and related credit investments. Its activities are primarily focused on the U.S. housing market.
Redwood operates through businesses that support the origination, financing and securitization of residential mortgage credit. Its platform has historically included Sequoia, which acquires and securitizes residential loans, as well as CoreVest, which provides financing to residential real estate investors and developers.
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