Redwood Trust Inc. [RWT] Stock trading around $11.98 per share: What’s Next?

Redwood Trust Inc. [NYSE: RWT] loss -1.16% or -0.14 points to close at $11.98 with a heavy trading volume of 685455 shares. The company report on June 22, 2021 that Redwood Trust To Participate In A Non-Agency Market Trends Webcast Featuring Chief Executive Officer, Chris Abate.

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Redwood Trust, Inc. (NYSE: RWT) a leader in expanding access to housing for homebuyers and renters, announced that Chris Abate, Chief Executive Officer, along with other members of Redwood’s senior management team, will participate in a fireside chat moderated by Stephen Laws, Director, Equity Research, Raymond James on Tuesday, June 29, 2021 at 8:00am Pacific Time. Key topics of discussion will include macro trends in the non-agency market, trends in homeownership and single-family rental, and demand for lending.

Webcast InformationA link to the live webcast will be available through the Events and Presentations section of Redwood Trust’s Investor Relations website at https://ir.redwoodtrust.com/events-and-presentations/events. An archive of the webcast will be available at the same location for 90 days.

It opened the trading session at $12.14, the shares rose to $12.14 and dropped to $11.94, the range by which the price of stock traded the whole day. The daily chart for RWT points out that the company has recorded 36.45% gains over the past six months. However, it is still -102.02% lower than its most recent low trading price.

If we look at the average trading volume of 966.13K shares, RWT reached to a volume of 685455 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $13.36 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 1.70. 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.

Keefe Bruyette have made an estimate for Redwood Trust Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 18, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price to Buy. The new note on the price target was released on December 14, 2020, representing the official price target for Redwood Trust Inc. stock.

The Average True Range (ATR) for Redwood Trust Inc. is set at 0.27, with the Price to Sales ratio for RWT stock in the period of the last 12 months amounting to 2.73. The Price to Book ratio for the last quarter was 1.11, with the Price to Cash per share for the same quarter was set at 3.73.

Trading performance analysis for RWT stock

Redwood Trust Inc. [RWT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.56. With this latest performance, RWT shares gained by 6.39% in over the last four-week period, additionally plugging by 36.45% over the last 6 months – not to mention a rise of 82.90% 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 53.53, with the RSI for the last a single of trading hit 47.92, and the three-weeks RSI is set at 56.17 for Redwood Trust Inc. [RWT]. The present Moving Average for the last 50 days of trading for this stock 11.42, while it was recorded at 12.06 for the last single week of trading, and 9.69 for the last 200 days.

Redwood Trust Inc. [RWT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Redwood Trust Inc. [RWT] shares currently have an operating margin of -11.92 and a Gross Margin at +95.70. Redwood Trust Inc.’s Net Margin is presently recorded at -144.64.

Return on Total Capital for RWT is now -0.35, given the latest momentum, and Return on Invested Capital for the company is -4.68. Return on Equity for this stock declined to -39.74, with Return on Assets sitting at -4.12. When it comes to the capital structure of this company, Redwood Trust Inc. [RWT] has a Total Debt to Total Equity ratio set at 816.05. Additionally, RWT Total Debt to Total Capital is recorded at 89.08, with Total Debt to Total Assets ending up at 87.55. Long-Term Debt to Equity for the company is recorded at 768.69, with the Long-Term Debt to Total Capital now at 83.91.

Reflecting on the efficiency of the workforce at the company, Redwood Trust Inc. [RWT] managed to generate an average of -$2,363,713 per employee. Receivables Turnover for the company is 2.06 with a Total Asset Turnover recorded at a value of 0.03.

Redwood Trust Inc. [RWT]: An earnings per share (EPS) analysis

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 -11.01%.

An analysis of insider ownership at Redwood Trust Inc. [RWT]

There are presently around $1,000 million, or 74.90% of RWT stock, in the hands of institutional investors. The top three institutional holders of RWT stocks are: BLACKROCK INC. with ownership of 20,917,191, which is approximately 5.624% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 11,806,499 shares of the stock with an approximate value of $141.44 million in RWT stocks shares; and STATE STREET CORP, currently with $45.11 million in RWT stock with ownership of nearly -30.725% of the company’s market capitalization.

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Positions in Redwood Trust Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 85 institutional holders increased their position in Redwood Trust Inc. [NYSE:RWT] by around 6,422,946 shares. Additionally, 96 investors decreased positions by around 7,140,409 shares, while 44 investors held positions by with 69,875,359 shares. The mentioned changes placed institutional holdings at 83,438,714 shares, according to the latest SEC report filing. RWT stock had 18 new institutional investments in for a total of 905,625 shares, while 26 institutional investors sold positions of 2,105,452 shares during the same period.

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