Sunday, September 20, 2020

Redwood Trust Inc. [RWT] is -54.05% lower this YTD. Is it still time to buy?

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Redwood Trust Inc. [NYSE: RWT] jumped around 0.47 points on Monday, while shares priced at $7.60 at the close of the session, up 6.59%. The company report on September 11, 2020 that Redwood Trust Announces Dividend Increase Of 12% For The Third Quarter Of 2020.

Redwood Trust, Inc. (NYSE: RWT) today announced that its Board of Directors has declared a 12% increase in the company’s regular quarterly common stock dividend to $0.14 per share for the third quarter of 2020, up from $0.125 per share for the second quarter of 2020. This marks the company’s 85th consecutive quarterly dividend. The third quarter 2020 dividend is payable on September 29, 2020 to stockholders of record on September 22, 2020.

“We are pleased to increase the dividend we pay to shareholders. We remain committed to delivering an attractive dividend while continuing to strategically deploy capital going forward,” said Christopher J. Abate, Chief Executive Officer of Redwood Trust.

Redwood Trust Inc. stock is now -54.05% down from its year-to-date (YTD) trading value. RWT Stock saw the intraday high of $7.61 and lowest of $7.15 per share. The company’s 52-week high price is 18.01, which means current price is +255.14% above from all time high which was touched on 02/18/20.

Compared to the average trading volume of 2.22M shares, RWT reached a trading volume of 2138401 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Redwood Trust Inc. [RWT]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RWT shares is $7.60 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RWT stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Raymond James have made an estimate for Redwood Trust Inc. shares, keeping their opinion on the stock as Strong Buy, with their previous recommendation back on August 11, 2020. The new note on the price target was released on March 23, 2020, representing the official price target for Redwood Trust Inc. stock.

The Average True Range (ATR) for Redwood Trust Inc. is set at 0.32, with the Price to Sales ratio for RWT stock in the period of the last 12 months amounting to 1.32. The Price to Book ratio for the last quarter was 0.93, with the Price to Cash per share for the same quarter was set at 4.55.

How has RWT stock performed recently?

Redwood Trust Inc. [RWT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.26. With this latest performance, RWT shares gained by 6.74% in over the last four-week period, additionally sinking by -18.19% over the last 6 months – not to mention a drop of -54.55% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RWT stock in for the last two-week period is set at 62.16, with the RSI for the last a single of trading hit 65.97, and the three-weeks RSI is set at 58.56 for Redwood Trust Inc. [RWT]. The present Moving Average for the last 50 days of trading for this stock 6.96, while it was recorded at 7.30 for the last single week of trading, and 9.87 for the last 200 days.

Redwood Trust Inc. [RWT]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Redwood Trust Inc. [RWT] shares currently have an operating margin of +23.44 and a Gross Margin at +97.33. Redwood Trust Inc.’s Net Margin is presently recorded at +21.82.

Return on Total Capital for RWT is now 1.20, given the latest momentum, and Return on Invested Capital for the company is 1.33. Return on Equity for this stock inclined to 10.35, with Return on Assets sitting at 1.10. When it comes to the capital structure of this company, Redwood Trust Inc. [RWT] has a Total Debt to Total Equity ratio set at 865.32. Additionally, RWT Total Debt to Total Capital is recorded at 89.64, with Total Debt to Total Assets ending up at 87.86. Long-Term Debt to Equity for the company is recorded at 737.66, with the Long-Term Debt to Total Capital now at 76.42.

Reflecting on the efficiency of the workforce at the company, Redwood Trust Inc. [RWT] managed to generate an average of $441,898 per employee. Receivables Turnover for the company is 3.28 with a Total Asset Turnover recorded at a value of 0.05.

Earnings analysis for Redwood Trust Inc. [RWT]

With the latest financial reports released by the company, Redwood Trust Inc. posted 0.37/share EPS, while the average EPS was predicted by analysts to be reported at 0.4/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -7.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RWT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Redwood Trust Inc. go to 0.36%.

Insider trade positions for Redwood Trust Inc. [RWT]

There are presently around $692 million, or 81.20% of RWT stock, in the hands of institutional investors. The top three institutional holders of RWT stocks are: BLACKROCK INC. with ownership of 19,792,961, which is approximately 0.678% of the company’s market cap and around 0.60% of the total institutional ownership; VANGUARD GROUP INC, holding 11,574,240 shares of the stock with an approximate value of $87.96 million in RWT stocks shares; and STATE STREET CORP, currently with $41.4 million in RWT stock with ownership of nearly 1.556% of the company’s market capitalization.

Positions in Redwood Trust Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 118 institutional holders increased their position in Redwood Trust Inc. [NYSE:RWT] by around 13,462,064 shares. Additionally, 110 investors decreased positions by around 24,325,155 shares, while 29 investors held positions by with 53,203,836 shares. The mentioned changes placed institutional holdings at 90,991,055 shares, according to the latest SEC report filing. RWT stock had 39 new institutional investments in for a total of 1,674,827 shares, while 59 institutional investors sold positions of 16,957,617 shares during the same period.

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