Redwood Trust, Inc. (NYSE:RWT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday, May 10th.
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. “
Redwood Trust (NYSE:RWT) last released its earnings results on Thursday, May 4th. The real estate investment trust reported $0.36 earnings per share for the quarter, hitting the consensus estimate of $0.36. Redwood Trust had a return on equity of 15.35% and a net margin of 48.35%. The business had revenue of $62 million during the quarter, compared to the consensus estimate of $34.89 million. During the same period last year, the company earned $0.28 earnings per share.
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 30th. Stockholders of record on Friday, June 16th will be given a dividend of $0.28 per share. The ex-dividend date is Wednesday, June 14th. This represents a $1.12 annualized dividend and a dividend yield of 6.83%. Redwood Trust’s dividend payout ratio (DPR) is 67.07%.
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In related news, General Counsel Andrew P. Stone sold 3,730 shares of Redwood Trust stock in a transaction dated Monday, May 1st. The stock was sold at an average price of $17.24, for a total value of $64,305.20. Following the completion of the sale, the general counsel now directly owns 49,626 shares in the company, valued at $855,552.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.35% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Redwood Trust during the fourth quarter valued at about $11,939,000. RBO & Co. LLC bought a new position in Redwood Trust during the fourth quarter valued at about $10,674,000. First Trust Advisors LP raised its position in Redwood Trust by 1,457.8% in the first quarter. First Trust Advisors LP now owns 480,693 shares of the real estate investment trust’s stock valued at $7,984,000 after buying an additional 449,836 shares during the period. IronBridge Capital Management LP raised its position in Redwood Trust by 105.7% in the first quarter. IronBridge Capital Management LP now owns 718,273 shares of the real estate investment trust’s stock valued at $11,931,000 after buying an additional 369,068 shares during the period. Finally, Guggenheim Capital LLC raised its position in Redwood Trust by 400.2% in the fourth quarter. Guggenheim Capital LLC now owns 361,090 shares of the real estate investment trust’s stock valued at $5,492,000 after buying an additional 288,900 shares during the period. Hedge funds and other institutional investors own 83.73% of the company’s stock.
Redwood Trust Company Profile
Redwood Trust, Inc, through its subsidiaries, focuses on investing in mortgage and other real estate related assets. The Company is engaged in mortgage banking activities. The Company operates through three segments: Residential Investments, Residential Mortgage Banking and Commercial. The Residential Investments segment includes a portfolio of investments in residential mortgage-backed securities (RMBS) retained from its Sequoia securitizations.
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