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

Redwood Trust (NYSE:RWT) posted its earnings results 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 NYSE RWT opened at $6.37 on Friday. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15. The company’s fifty day moving average price is $6.58 and its 200 day moving average price is $7.10. The company has a debt-to-equity ratio of 14.55, a quick ratio of 44.36 and a current ratio of 44.36. The company has a market capitalization of $843.49 million, a PE ratio of 11.57 and a beta of 1.57.

Redwood Trust Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Monday, December 23rd were issued 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 dividend on an annualized basis and a yield of 11.31%. Redwood Trust’s dividend payout ratio is 130.91%.

Analyst Ratings Changes

A number of equities research analysts recently commented on RWT shares. JPMorgan Chase & Co. decreased their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research report on Tuesday, January 21st. StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a research report on Monday, November 11th. Finally, JMP Securities reissued a “market outperform” rating and set a $8.00 target price on shares of Redwood Trust in a research report on Friday. Five investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $7.84.

About Redwood Trust

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.