JMP Securities Lowers Redwood Trust (NYSE:RWT) Price Target to $8.00

Redwood Trust (NYSE:RWT) had its price target dropped by analysts at JMP Securities from $9.00 to $8.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a “market outperform” rating on the real estate investment trust’s stock. JMP Securities’ target price would suggest a potential upside of 26.28% from the company’s previous close.

Several other research analysts have also recently weighed in on the company. JPMorgan Chase & Co. reduced their price target on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research report on Tuesday. StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Monday, November 11th. Five investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Redwood Trust presently has a consensus rating of “Moderate Buy” and an average target price of $7.84.

Redwood Trust Stock Performance

RWT traded down $0.01 during trading on Thursday, reaching $6.34. 45,064 shares of the company’s stock were exchanged, compared to its average volume of 917,448. The company has a debt-to-equity ratio of 14.55, a current ratio of 44.36 and a quick ratio of 44.36. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15. The company’s fifty day simple moving average is $6.79 and its 200-day simple moving average is $7.18. The stock has a market capitalization of $839.51 million, a P/E ratio of 11.52 and a beta of 1.57.

Redwood Trust (NYSE:RWT) last posted its earnings results on Wednesday, October 30th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.04. Redwood Trust had a net margin of 9.35% and a return on equity of 6.01%. During the same quarter in the prior year, the firm earned $0.09 earnings per share. As a group, research analysts predict that Redwood Trust will post 0.57 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP raised its stake in Redwood Trust by 6.9% in the 3rd quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock valued at $112,945,000 after purchasing an additional 941,223 shares during the last quarter. NFC Investments LLC grew its holdings in shares of Redwood Trust by 127.7% during the third quarter. NFC Investments LLC now owns 484,975 shares of the real estate investment trust’s stock worth $3,749,000 after buying an additional 271,975 shares in the last quarter. Ceredex Value Advisors LLC raised its position in shares of Redwood Trust by 22.8% in the third quarter. Ceredex Value Advisors LLC now owns 1,113,600 shares of the real estate investment trust’s stock valued at $8,608,000 after buying an additional 207,088 shares during the last quarter. Systematic Financial Management LP purchased a new position in shares of Redwood Trust in the third quarter worth about $1,217,000. Finally, State Street Corp boosted its position in Redwood Trust by 2.0% during the third quarter. State Street Corp now owns 5,189,667 shares of the real estate investment trust’s stock worth $40,116,000 after acquiring an additional 102,274 shares during the last quarter. Institutional investors and hedge funds own 74.34% of the company’s stock.

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.