Callan Capital LLC Makes New Investment in Redwood Trust, Inc. (NYSE:RWT)

Callan Capital LLC bought a new position in shares of Redwood Trust, Inc. (NYSE:RWT) during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 25,000 shares of the real estate investment trust’s stock, valued at approximately $163,000.

Several other hedge funds have also recently bought and sold shares of the company. Wellington Management Group LLP lifted its stake in Redwood Trust by 6.9% during the 3rd quarter. Wellington Management Group LLP now owns 14,611,264 shares of the real estate investment trust’s stock worth $112,945,000 after acquiring an additional 941,223 shares in the last quarter. State Street Corp lifted its position in shares of 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 purchasing an additional 102,274 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Redwood Trust by 0.8% during the third quarter. Geode Capital Management LLC now owns 3,038,438 shares of the real estate investment trust’s stock worth $23,492,000 after purchasing an additional 25,444 shares in the last quarter. Ceredex Value Advisors LLC lifted its holdings in Redwood Trust by 22.8% during the 3rd quarter. Ceredex Value Advisors LLC now owns 1,113,600 shares of the real estate investment trust’s stock worth $8,608,000 after buying an additional 207,088 shares in the last quarter. Finally, Van ECK Associates Corp lifted its holdings in Redwood Trust by 18.0% during the 4th quarter. Van ECK Associates Corp now owns 1,085,593 shares of the real estate investment trust’s stock worth $7,089,000 after buying an additional 165,281 shares in the last quarter. Institutional investors and hedge funds own 74.34% of the company’s stock.

Redwood Trust Stock Performance

NYSE:RWT opened at $6.43 on Monday. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36. Redwood Trust, Inc. has a 12 month low of $5.45 and a 12 month high of $8.15. The firm has a market capitalization of $851.44 million, a PE ratio of 19.47 and a beta of 1.57. The business’s fifty day moving average price is $6.50 and its 200 day moving average price is $7.07.

Redwood Trust (NYSE:RWT) last issued its earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.03). Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. The business had revenue of $27.60 million for the quarter, compared to analyst estimates of $26.00 million. On average, sell-side analysts anticipate that Redwood Trust, Inc. will post 0.78 earnings per share for the current fiscal year.

Redwood Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Monday, December 23rd were issued a dividend of $0.18 per share. The ex-dividend date was Monday, December 23rd. This represents a $0.72 dividend on an annualized basis and a yield of 11.21%. This is a boost from Redwood Trust’s previous quarterly dividend of $0.17. Redwood Trust’s dividend payout ratio (DPR) is presently 218.19%.

Analysts Set New Price Targets

RWT has been the topic of a number of research reports. JPMorgan Chase & Co. reduced their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. StockNews.com cut Redwood Trust from a “hold” rating to a “sell” rating in a research note on Monday, February 17th. Finally, JMP Securities reaffirmed a “market outperform” rating and issued a $8.00 price target on shares of Redwood Trust in a research report on Friday, February 14th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target 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.