Redwood Trust (NYSE:RWT) Azioni

REDWOOD TRUST INC

Redwood Trust

Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: Sequoia Mortgage Banking includes mortgage loan conduit that acquires residential consumer loans from third-party originators for sale to whole loan buyers and securitization; CoreVest Mortgage Banking segment includes consists of a platform that originates residential investor loans for securitization, sale, or transfer into Redwood Investments portfolio; and Redwood Investments segment consists of organic investments sourced through mortgage banking operations, including securities retained from Sequoia and CoreVest securitization activities. It derives maximum revenue from Redwood Investments segment.

Redwood Trust Inc

Redwood Trust, Inc. 9.125% Senior Notes Due 2029

Redwood Trust, Inc. 9.00% Senior Notes Due 2029

Redwood Trust, Inc. 9.125% Senior Notes Due 2030

Redwood Trust, Inc. 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock

In the latest quarter, 9 analysts provided ratings for Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">4</td>
<td align="right">3</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">3</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $7.0, a high estimate of $8.00, and a low estimate of $5.50. Highlighting a 3.45% decrease, the current average has fallen from the previous average price target of $7.25. 
<img src="https://www.benzinga.com/files/images/story/2025/1746561665_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A clear picture of Redwood Trust's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Bose George</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$7.00</td>
<td>$7.75</td>
</tr>
<tr>
<td>Douglas Harter</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$7.00</td>
<td>$6.50</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Maintains</td>
<td>Buy</td>
<td>$7.00</td>
<td>$7.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$6.00</td>
<td>$5.50</td>
</tr>
<tr>
<td>Trevor Cranston</td>
<td>JMP Securities</td>
<td>Lowers</td>
<td>Market Outperform</td>
<td>$7.50</td>
<td>$8.00</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Lowers</td>
<td>Buy</td>
<td>$7.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$5.50</td>
<td>$6.50</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Maintains</td>
<td>Buy</td>
<td>$8.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Trevor Cranston</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$8.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Redwood Trust. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Redwood Trust's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Redwood Trust's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/RWT/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Redwood Trust analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">you can start by tracking it here</a>.
<h2>Discovering Redwood Trust: A Closer Look</h2>
Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: Sequoia Mortgage Banking includes mortgage loan conduit that acquires residential consumer loans from third-party originators for sale to whole loan buyers and securitization; CoreVest Mortgage Banking segment includes consists of a platform that originates residential investor loans for securitization, sale, or transfer into Redwood Investments portfolio; and Redwood Investments segment consists of organic investments sourced through mortgage banking operations, including securities retained from Sequoia and CoreVest securitization activities. It derives maximum revenue from Redwood Investments segment.
<h3>Key Indicators: Redwood Trust's Financial Health</h3>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Redwood Trust's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 63.74%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Redwood Trust's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 19.32%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Redwood Trust's ROE excels beyond industry benchmarks, reaching 1.24%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Redwood Trust's ROA excels beyond industry benchmarks, reaching 0.07%. This signifies efficient management of assets and strong financial health.
Debt Management: Redwood Trust's debt-to-equity ratio stands notably higher than the industry average, reaching 15.4. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>Analyst Ratings: Simplified</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

What Analysts Are Saying About Redwood Trust Stock

Keefe, Bruyette &amp; Woods analyst Bose George maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Outperform and lowers the price target from $7.75 to $7.

News

Price Target

Keefe, Bruyette & Woods Maintains Outperform on Redwood Trust, Lowers Price Target to $7

UBS analyst Douglas Harter maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Buy and raises the price target from $6.5 to $7.

UBS Maintains Buy on Redwood Trust, Raises Price Target to $7

JP Morgan analyst Richard Shane maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Neutral and raises the price target from $5.5 to $6.

JP Morgan Maintains Neutral on Redwood Trust, Raises Price Target to $6

Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) reported quarterly earnings of $0.14 per share which missed the analyst consensus estimate of $0.17 by 17.65 percent. This is a 75 percent increase over earnings of $0.08 per share from the same period last year. The company reported quarterly sales of $27.90 million which missed the analyst consensus estimate of $28.30 million by 1.40 percent. This is a 16.25 percent increase over sales of $24.00 million the same period last year.

Earnings

Earnings Misses

Redwood Trust Q1 Adj. EPS $0.14 Misses $0.17 Estimate, Sales $27.90M Miss $28.30M Estimate

Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) reported quarterly earnings of $0.14 per share which missed the analyst consensus estimate of $0.17 by 17.65 percent. This is a 75 percent increase over earnings of $0.08 per share from the same period last year.

Redwood Trust Q1 Adj. EPS $0.14 Misses $0.17 Estimate

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Earnings Scheduled For April 30, 2025

In the current market session, Redwood Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) share price is at $5.86, after a 0.17% spike. Moreover, over the past month, the stock decreased by 4.17%, but in the past year, went up by 2.53%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1745510418_0_0.png" alt="Past Year Chart" />

<h3>A Look at Redwood Trust P/E Relative to Its Competitors</h3>
The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued. 
Compared to the aggregate P/E ratio of 13.74 in the Mortgage Real Estate Investment Trusts (REITs) industry, Redwood Trust Inc. has a higher P/E ratio of 18.28. Shareholders might be inclined to think that Redwood Trust Inc. might perform better than its industry group. It's also possible that the stock is overvalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1745510418_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

Markets

A Look Into Redwood Trust Inc's Price Over Earnings

JMP Securities analyst Trevor Cranston maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Market Outperform and lowers the price target from $8 to $7.5.

JMP Securities Maintains Market Outperform on Redwood Trust, Lowers Price Target to $7.5

In the latest quarter, 6 analysts provided ratings for Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>), showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated Redwood Trust and provided 12-month price targets. The average target is $7.17, accompanied by a high estimate of $8.00 and a low estimate of $5.50. Experiencing a 7.48% decline, the current average is now lower than the previous average price target of $7.75. 
<img src="https://www.benzinga.com/files/images/story/2025/1744894860_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The standing of Redwood Trust among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
&#x7C; Analyst &#x7C; Analyst Firm &#x7C; Action Taken &#x7C; Rating &#x7C;Current Price Target&#x7C; Prior Price Target &#x7C; 
&#x7C;--------------------&#x7C;--------------------&#x7C;---------------&#x7C;-----------------&#x7C;--------------------&#x7C;--------------------&#x7C; 
&#x7C;Jason Weaver &#x7C;Jones Trading &#x7C;Lowers &#x7C;Buy &#x7C; $7.00&#x7C;$8.00 &#x7C; 
&#x7C;Richard Shane &#x7C;JP Morgan &#x7C;Lowers &#x7C;Neutral &#x7C; $5.50&#x7C;$6.50 &#x7C; 
&#x7C;Jason Weaver &#x7C;Jones Trading &#x7C;Maintains &#x7C;Buy &#x7C; $8.00&#x7C;$8.00 &#x7C; 
&#x7C;Trevor Cranston &#x7C;JMP Securities &#x7C;Maintains &#x7C;Market Outperform&#x7C; $8.00&#x7C;$8.00 &#x7C; 
&#x7C;Chris Muller &#x7C;JMP Securities &#x7C;Lowers &#x7C;Market Outperform&#x7C; $8.00&#x7C;$9.00 &#x7C; 
&#x7C;Richard Shane &#x7C;JP Morgan &#x7C;Lowers &#x7C;Neutral &#x7C; $6.50&#x7C;$7.00 &#x7C;
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for Redwood Trust's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Redwood Trust's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/RWT/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Redwood Trust analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">you can start by tracking it here</a>.
<h2>Delving into Redwood Trust's Background</h2>
Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: Sequoia Mortgage Banking includes mortgage loan conduit that acquires residential consumer loans from third-party originators for sale to whole loan buyers and securitization; CoreVest Mortgage Banking segment includes consists of a platform that originates residential investor loans for securitization, sale, or transfer into Redwood Investments portfolio; and Redwood Investments segment consists of organic investments sourced through mortgage banking operations, including securities retained from Sequoia and CoreVest securitization activities. It derives maximum revenue from Redwood Investments segment.
<h3>Breaking Down Redwood Trust's Financial Performance</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Challenges: Redwood Trust's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -37.96%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Redwood Trust's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -35.97%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Redwood Trust's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.12%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Redwood Trust's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.07%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Redwood Trust's debt-to-equity ratio surpasses industry norms, standing at 14.63. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>How Are Analyst Ratings Determined?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Demystifying Redwood Trust: Insights From 6 Analyst Reviews

Jones Trading analyst Jason Weaver maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Buy and lowers the price target from $8 to $7.

Jones Trading Maintains Buy on Redwood Trust, Lowers Price Target to $7

JP Morgan analyst Richard Shane maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Neutral and lowers the price target from $6.5 to $5.5.

JP Morgan Maintains Neutral on Redwood Trust, Lowers Price Target to $5.5

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Shares of broader financial companies are trading higher following President Trump's decision to implement a 90-day pause on reciprocal tariffs for all countries except China.

Redwood Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) short percent of float has fallen 10.36% since its last report. The company recently reported that it has 3.87 million shares sold short, which is 3.46% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.32 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Redwood Trust Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1743166824_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Redwood Trust has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Redwood Trust's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Redwood Trust's peer group average for short interest as a percentage of float is 6.80%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

How Do Investors Really Feel About Redwood Trust?

Jones Trading analyst Jason Weaver maintains Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Buy and maintains $8 price target.

Jones Trading Maintains Buy on Redwood Trust, Maintains $8 Price Target

Ratings for Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Redwood Trust, revealing an average target of $7.38, a high estimate of $8.00, and a low estimate of $6.50. Observing a downward trend, the current average is 7.75% lower than the prior average price target of $8.00. 
<img src="https://www.benzinga.com/files/images/story/2025/1739559646_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Redwood Trust. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Trevor Cranston</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Chris Muller</td>
<td>JMP Securities</td>
<td>Lowers</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$9.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$6.50</td>
<td>$7.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$8.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Redwood Trust. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Redwood Trust's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Capture valuable insights into Redwood Trust's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Redwood Trust analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>All You Need to Know About Redwood Trust</h2>
Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.
<h3>Redwood Trust: Delving into Financials</h3>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Redwood Trust displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 1053.95%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Redwood Trust's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 21.72%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Redwood Trust's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.13%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Redwood Trust's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.07%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Redwood Trust's debt-to-equity ratio surpasses industry norms, standing at 14.56. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>How Are Analyst Ratings Determined?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

4 Analysts Assess Redwood Trust: What You Need To Know

JMP Securities analyst Trevor Cranston reiterates Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) with a Market Outperform and maintains $8 price target.

Reiteration

JMP Securities Reiterates Market Outperform on Redwood Trust, Maintains $8 Price Target

Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) reported quarterly earnings of $0.13 per share which missed the analyst consensus estimate of $0.17 by 23.53 percent. This is a 160 percent increase over earnings of $0.05 per share from the same period last year. The company reported quarterly sales of $27.60 million which missed the analyst consensus estimate of $30.05 million by 8.17 percent. This is a 38.00 percent increase over sales of $20.00 million the same period last year.

Redwood Trust Q4 Adj EPS$0.13 Misses $0.17 Estimate, Sales $27.60M Miss $30.05M Estimate

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Earnings Scheduled For February 13, 2025

Redwood Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWT#NYSE">RWT</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Redwood Trust, presenting an average target of $7.38, a high estimate of $8.00, and a low estimate of $6.50. This current average has decreased by 6.46% from the previous average price target of $7.89. 
<img src="https://www.benzinga.com/files/images/story/2025/1737669665_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
A clear picture of Redwood Trust's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Chris Muller</td>
<td>JMP Securities</td>
<td>Lowers</td>
<td>Market Outperform</td>
<td>$8.00</td>
<td>$9.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$6.50</td>
<td>$7.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Jason Weaver</td>
<td>Jones Trading</td>
<td>Raises</td>
<td>Buy</td>
<td>$8.00</td>
<td>$7.55</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Redwood Trust. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Redwood Trust compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Redwood Trust's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Redwood Trust's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/RWT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Redwood Trust analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Unveiling the Story Behind Redwood Trust</h2>
Redwood Trust Inc is a real estate investment trust focused on different areas of housing credit. The company operates in three segments: the Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio, Residential Investor Mortgage Banking segment consists of a platform that originates and acquires business purpose lending loans for subsequent securitization, sale, or transfers into its investment portfolio, and Investment Portfolio segment consists of organic investments sourced through residential and business-purpose mortgage banking operations.
<h3>Unraveling the Financial Story of Redwood Trust</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Redwood Trust's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 1053.95%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Redwood Trust's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.72%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Redwood Trust's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.13% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Redwood Trust's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.07%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 14.56, caution is advised due to increased financial risk.
<h2>How Are Analyst Ratings Determined?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Assessing Redwood Trust: Insights From 4 Financial Analysts

Press Releases

Fred Matera Promoted to Chief Executive Officer of CoreVest

Redwood Trust Announces Common Dividend Increase of 5.9% to $0.18 Per Share for the Fourth Quarter 2024

Redwood Trust Announces Key Updates to Residential Consumer Operating Platforms

Redwood Trust Prices $90.0 Million Senior Notes Offering

Redwood Trust Announces Dividend Distribution Tax Information for 2024

Redwood Trust Announces Date of Fourth Quarter 2024 Financial Results Webcast and Conference Call

Redwood Trust Reports Fourth Quarter 2024 Financial Results

Redwood Trust Announces First Quarter 2025 Common and Preferred Dividends

Redwood Trust Announces Date of First Quarter 2025 Financial Results Webcast and Conference Call

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