Redwood Trust Inc. (NYSE:RWT) finished Wednesday with an addition of $0.02 to close at $7.80, an upside of 0.26 percent. An average of 1,740,340 shares of common stock have been traded in the last five days. There was a gain of $0.32 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 1,384,175 shares traded, while the 50-day average volume stands at 1,222,664.
RWT stock has increased by 22.07% in the last month. The company shares reached their 1-month lowest point of $6.27 on 07/10/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $5.47 and a high of $8.72 in 52 weeks. It has reached a new high 15 times so far this year and achieved 15.38% or $1.04 in price. In spite of this, the price is down -10.55% from the 52-week high.
Insider Transactions
RWT stock investors should be aware that Redwood Trust Inc. (RWT) stock had its last reported insider trading activity 233 days ago on Dec 20. In this transaction, the insider spent $80,303. Chief Legal Officer, Stone Andrew P, disposed of 7,000 shares at a price of $6.86 on Dec 20. The insider now owns more than $48,020 worth of shares.
Valuation Metrics
Redwood Trust Inc. (RWT) stock’s beta is 1.42. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.19, the price-to-book (PB) ratio at 0.83.
The company’s most recent quarterly dividend payment was $0.16 a share, representing a down of -30.43% from $0.23 last year. Its latest decrease dividend $0.07 reported on Tuesday June 13 2023.
Financial Health
Further, the company has a long term debt to equity ratio of 9.51 and a total debt to equity ratio of 11.02 for the quarter ending June 29. Its gross profit as reported stood at $41.08 million compared to revenue of $707.85 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Redwood Trust Inc.’s return on assets was -1.30%.
Earnings Surprise
For the three-month period that ended June 29, Redwood Trust Inc. had $8.18 billion in total debt. The analyst consensus anticipated Redwood Trust Inc.’s latest quarter earnings to come in at $0.11 per share, but it turned out to be $0.14, a 27.30% surprise. For the quarter, EBITDA amounted to $4.38 million. At the end of the quarter ending June 29, Redwood Trust Inc.’s stock balance sheet showed total debt was $11.44 billion. Shareholders own equity worth $114.23 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Redwood Trust Inc. (RWT) price momentum. RSI 9-day as of the close on 09 August was 79.91%, suggesting the stock is Overbought, with historical volatility in this time frame at 45.41%.
As of today, RWT’s price is $7.69 +4.28% or $0.32 from its 5-day moving average. RWT is currently trading +21.88% higher than its 20-day SMA and +10.95% higher than its 100-day SMA. However, the stock’s current price level is +32.43% above the SMA50 and +22.26% above the SMA200.
The stochastic %K and %D were 97.09% and 94.72%, respectively, and the average true range (ATR) was 0.21. With the 14-day stochastic at 96.19% and the average true range at 0.20, the RSI (14) stands at 77.09%. The stock has reached 0.18 on the 9-day MACD Oscillator while the 14-day reading was at 0.44.
Analyst Ratings
Piper Sandler downgraded Redwood Trust Inc. (NYSE: RWT) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Redwood Trust Inc. (RWT) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RWT, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.
What is RWT’s price target for the next 12 months?
Analysts predict a range of price targets between $7.50 and $9.00, with a median target of $8.00. Taking a look at these predictions, the average price target given by analysts for Redwood Trust Inc. (RWT) stock is $8.25.
