What Analysts Are Saying About Redwood Trust Stock
In the latest quarter, 9 analysts provided ratings for Redwood Trust (NYSE:RWT), 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 3 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 3 | 1 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 0 | 0 |
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.
Investigating Analyst Ratings: An Elaborate Study
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Bose George | Keefe, Bruyette & Woods | Lowers | Outperform | $7.00 | $7.75 |
| Douglas Harter | UBS | Raises | Buy | $7.00 | $6.50 |
| Jason Weaver | Jones Trading | Maintains | Buy | $7.00 | $7.00 |
| Richard Shane | JP Morgan | Raises | Neutral | $6.00 | $5.50 |
| Trevor Cranston | JMP Securities | Lowers | Market Outperform | $7.50 | $8.00 |
| Jason Weaver | Jones Trading | Lowers | Buy | $7.00 | $8.00 |
| Richard Shane | JP Morgan | Lowers | Neutral | $5.50 | $6.50 |
| Jason Weaver | Jones Trading | Maintains | Buy | $8.00 | $8.00 |
| Trevor Cranston | JMP Securities | Maintains | Market Outperform | $8.00 | $8.00 |
Key Insights:
- 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.
- 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.
- 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.
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.
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Discovering Redwood Trust: A Closer Look
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.
Key Indicators: Redwood Trust's Financial Health
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.
Analyst Ratings: Simplified
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.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.