Redwood Trust, Inc. (NYSE:RWT) Plans Quarterly Dividend of $0.23

Posted by on Jun 9th, 2022

Redwood Trust, Inc. (NYSE:RWT – Get Rating) declared a quarterly dividend on Thursday, June 9th, RTT News reports. Shareholders of record on Thursday, June 23rd will be paid a dividend of 0.23 per share by the real estate investment trust on Thursday, June 30th. This represents a $0.92 dividend on an annualized basis and a yield of 10.19%.

Redwood Trust has decreased its dividend payment by an average of 12.9% annually over the last three years and has raised its dividend every year for the last 1 years. Redwood Trust has a dividend payout ratio of 63.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Redwood Trust to earn $1.55 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 59.4%.

Shares of NYSE RWT traded down $0.23 during midday trading on Thursday, hitting $9.03. The stock had a trading volume of 1,644,916 shares, compared to its average volume of 1,469,324. The company has a market capitalization of $1.09 billion, a PE ratio of 4.79 and a beta of 0.96. The stock has a 50 day simple moving average of $9.73 and a 200-day simple moving average of $11.21. Redwood Trust has a 1 year low of $8.63 and a 1 year high of $14.17. The company has a quick ratio of 7.79, a current ratio of 6.82 and a debt-to-equity ratio of 7.50.

Redwood Trust (NYSE:RWT – Get Rating) last posted its earnings results on Thursday, April 28th. The real estate investment trust reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.02). Redwood Trust had a return on equity of 12.87% and a net margin of 39.78%. During the same period last year, the firm posted $0.40 EPS. As a group, analysts expect that Redwood Trust will post 1.25 earnings per share for the current fiscal year.

A number of equities research analysts have recently weighed in on the company. BTIG Research dropped their price objective on Redwood Trust from $11.50 to $10.50 and set a “buy” rating for the company in a research note on Thursday. TheStreet cut Redwood Trust from a “c” rating to a “d+” rating in a research note on Thursday, April 14th. StockNews.com assumed coverage on Redwood Trust in a research note on Thursday, March 31st. They issued a “hold” rating for the company. JMP Securities dropped their price objective on Redwood Trust from $14.50 to $13.00 in a research note on Tuesday, April 26th. Finally, Piper Sandler decreased their target price on Redwood Trust from $15.00 to $14.00 and set an “overweight” rating for the company in a report on Tuesday, April 5th. Four analysts have rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $13.31.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Virtu Financial LLC acquired a new stake in shares of Redwood Trust in the 1st quarter worth approximately $181,000. Point72 Hong Kong Ltd purchased a new stake in Redwood Trust in the 1st quarter valued at approximately $171,000. Evergreen Capital Management LLC lifted its stake in Redwood Trust by 2.5% in the 1st quarter. Evergreen Capital Management LLC now owns 705,848 shares of the real estate investment trust’s stock valued at $7,433,000 after buying an additional 17,365 shares in the last quarter. State Street Corp lifted its stake in Redwood Trust by 8.1% in the 1st quarter. State Street Corp now owns 4,129,943 shares of the real estate investment trust’s stock valued at $43,488,000 after buying an additional 308,880 shares in the last quarter. Finally, Prelude Capital Management LLC purchased a new stake in Redwood Trust in the 1st quarter valued at approximately $128,000. Institutional investors own 75.21% of the company’s stock.

Redwood Trust Company Profile (Get Rating)

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential 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.

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Dividend History for Redwood Trust (NYSE:RWT)

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