Redwood Trust (RWT) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Redwood Trust (NYSE:RWT) announced its quarterly earnings data on Wednesday. The real estate investment trust reported $0.39 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.02, Briefing.com reports. Redwood Trust had a net margin of 37.60% and a return on equity of 12.65%. The company had revenue of $35.00 million for the quarter, compared to the consensus estimate of $37.57 million. During the same period in the prior year, the firm posted $0.35 EPS. Redwood Trust’s revenue for the quarter was up .0% on a year-over-year basis.

RWT traded up $0.35 during midday trading on Thursday, hitting $16.80. 911,200 shares of the company traded hands, compared to its average volume of 726,848. The company has a debt-to-equity ratio of 3.82, a quick ratio of 3.74 and a current ratio of 3.74. The stock has a market capitalization of $1.37 billion, a P/E ratio of 12.09 and a beta of 0.68. Redwood Trust has a 52 week low of $14.29 and a 52 week high of $17.50.

The business also recently announced a quarterly dividend, which will be paid on Friday, December 28th. Shareholders of record on Friday, December 14th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 7.14%. The ex-dividend date of this dividend is Thursday, December 13th. Redwood Trust’s dividend payout ratio is currently 86.33%.

Institutional investors and hedge funds have recently bought and sold shares of the business. IFP Advisors Inc lifted its stake in Redwood Trust by 560.6% during the 3rd quarter. IFP Advisors Inc now owns 6,606 shares of the real estate investment trust’s stock valued at $107,000 after acquiring an additional 5,606 shares during the period. Stevens Capital Management LP bought a new position in Redwood Trust during the 2nd quarter valued at about $166,000. HL Financial Services LLC bought a new position in Redwood Trust during the 2nd quarter valued at about $169,000. CIBC Asset Management Inc bought a new position in Redwood Trust during the 3rd quarter valued at about $175,000. Finally, Verition Fund Management LLC bought a new position in Redwood Trust during the 2nd quarter valued at about $182,000. Institutional investors and hedge funds own 81.15% of the company’s stock.

Several brokerages recently commented on RWT. ValuEngine raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Wednesday, October 17th. Raymond James began coverage on shares of Redwood Trust in a research note on Friday, October 12th. They set an “outperform” rating and a $18.50 target price on the stock. Zacks Investment Research cut shares of Redwood Trust from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 10th. Finally, Compass Point set a $18.00 target price on shares of Redwood Trust and gave the company a “hold” rating in a research note on Wednesday, August 8th. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Redwood Trust has an average rating of “Buy” and an average price target of $17.88.

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Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, engages in mortgage banking activities 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, and issued by third parties and other credit risk-related investments; and invests in residential loans held for investment and mortgage servicing rights associated with residential loans.

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Earnings History for Redwood Trust (NYSE:RWT)

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