Redwood Trust (NYSE:RWT) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Redwood Trust (NYSE:RWT) posted its quarterly earnings data on Thursday. The real estate investment trust reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03), Zacks reports. Redwood Trust had a net margin of 9.35% and a return on equity of 6.01%.

Redwood Trust Stock Performance

Shares of RWT stock opened at $6.14 on Friday. The business has a 50 day simple moving average of $6.59 and a 200 day simple moving average of $7.10. The company has a debt-to-equity ratio of 14.55, a current ratio of 44.36 and a quick ratio of 44.36. The firm has a market capitalization of $813.67 million, a price-to-earnings ratio of 11.16 and a beta of 1.57. Redwood Trust has a 12-month low of $5.45 and a 12-month high of $8.15.

Redwood Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 23rd were given a dividend of $0.18 per share. The ex-dividend date of this dividend was Monday, December 23rd. This is an increase from Redwood Trust’s previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 11.73%. Redwood Trust’s payout ratio is currently 130.91%.

Analyst Upgrades and Downgrades

RWT has been the topic of several research analyst reports. JPMorgan Chase & Co. reduced their price target on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a research report on Tuesday, January 21st. StockNews.com upgraded Redwood Trust from a “sell” rating to a “hold” rating in a research report on Monday, November 11th. Finally, JMP Securities dropped their price target on Redwood Trust from $9.00 to $8.00 and set a “market outperform” rating on the stock in a research report on Thursday, January 23rd. Five investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $7.84.

Redwood Trust Company Profile

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.