As of Thursday close, Redwood Trust Inc.’s (NYSE:RWT) stock was down -$0.43, moving down -5.70 percent to $7.11. The average number of shares traded per day over the past five days has been 1,906,400 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.73 fall in that time frame. In the last twenty days, the average volume was 1,514,715, while in the previous 50 days, it was 1,356,030.
Since last month, RWT stock retreated -7.42%. Shares of the company fell to $7.10 on 09/21/23, the lowest level in the past month. A 52-week high of $8.72 was reached on 02/02/23 after having rallying from a 52-week low of $5.47. Since the beginning of this year, RWT’s stock price has risen by 5.18% or $0.35, and marked a new high 15 times. However, the stock has declined by -18.46% since its 52-week high.
RWT stock investors should be aware that Redwood Trust Inc. (RWT) stock had its last reported insider trading activity 276 days ago on Dec 20. COCHRANE COLLIN L., the Chief Accounting Officer of the company, disposed of 11,706 shares for $6.86 on Dec 20. It resulted in a $80,303 divestment by the insider. Stone Andrew P sold 7,000 shares at an average price of $6.86 on Dec 20. The insider now owns 106,821 shares following the transaction.
Valuation Metrics
The stock’s beta is 1.42. Besides these, the trailing price-to-sales (P/S) ratio of 1.14, the price-to-book (PB) ratio of 0.77, and the price-to-cash flow ratio of 2.16 may also be considered.
The latest dividend of $0.16 per share was paid out, remained unchanged from last year’s $0.16. On Tuesday June 13 2023, a $0.07 dividend decrease was announced.
Financial Health
According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 9.44, and the total debt-to-equity ratio was 10.82. On the profitability front, the trailing twelve-month gross margin is 14.10% percent. In the year ended June 29, operating margins totaled -13.60%. Based on annual data, RWT earned $41.08 million in gross profit and brought in $707.85 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.30%. Return on equity (ROE) for the past 12 months was -8.70%.
In Redwood Trust Inc.’s quarter-end financial report for June 29, it reported total debt of $8.18 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected Redwood Trust Inc. to report $0.11 quarterly earnings, the actual figure was $0.14 per share, beating the consensus estimate by 27.30%. During the quarter, the company generated $4.38 million in EBITDA. The value of shareholders’ equity is $114.23 million.
Technical Picture
This quick technical analysis looks at Redwood Trust Inc.’s (RWT) price momentum. With a historical volatility rate of 32.19%, the RSI 9-day stood at 22.02% on 21 September.
With respect to its five-day moving average, the current Redwood Trust Inc. price is down by -9.31% percent or -$0.73. At present, RWT shares trade -9.77% below its 20-day simple moving average and +13.22% percent above its 100-day simple moving average. However, the stock is currently trading approximately +11.09% above its SMA50 and -9.77% below its SMA200.
Stochastic coefficient K was 3.74% and Stochastic coefficient D was 11.32%, while ATR was 0.21. Given the Stochastic reading of 0.83% for the 14-day period, the RSI (14) reading has been calculated as 31.72%. As of today, the MACD Oscillator reading stands at -0.23, while the 14-day reading stands at -0.29.
Analyst Ratings
Redwood Trust Inc. downgraded its rating on Redwood Trust Inc. (NYSE: RWT) to a Neutral in a note to investors on June 15, 2023. The analysts firm previously had an Overweight rating on the stock.Redwood Trust Inc. (RWT) has been rated Overweight by analysts. According to 0 brokerage firms, RWT is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Redwood Trust Inc. stock as buy, with 6 recommending it as overweight.
With a median target price of $8.50, the current consensus forecast for the stock is $7.50 – $10.00. Based on these forecasts, analysts predict Redwood Trust Inc. (RWT) will achieve an average price target of $8.50.
